Bitwise files for ETF tracking companies holding over 1000 Bitcoin in treasury

Bitwise has proposed a new exchange-traded fund that invests in publicly traded companies holding more than 1,000 BTC in their corporate treasuries.

Bitwise said in its Dec. 26 regulatory filing that the Bitcoin Standard Corporations ETF will invest in stocks of publicly traded companies that embrace the “Bitcoin standard” by holding at least 1,000 Bitcoin (BTC) in their corporate treasuries.

These securities include “common shares, depositary receipts (both American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”)), tracking shares, and other units of capital. Such securities are It can be issued by U.S. and non-U.S. companies, including companies operating in emerging market countries, the filing said.

To qualify for inclusion, companies must have a market capitalization of at least $100 million, average daily liquidity of at least $1 million, and a free float of less than 10%. These criteria will be evaluated based on quarterly and annual corporate reports.

In terms of weighting, the ETF will prioritize the market value of each company’s Bitcoin holdings rather than its overall market value, as is usually the case with traditional equity ETFs.

For example, Marathon Digital Holdings, which holds over 44,000 BTC in reserves, has a higher weighting in the ETF than Tesla, which holds 9,720 BTC, despite a significantly larger market capitalization of $1.42 trillion compared to Marathon’s $6.55 billion. will have.

However, to ensure diversification and avoid overexposure to any one company, no single stock will have a weightage of more than 25% in the fund.

Commenting on the application, ETF Shop President Nate Geraci said the ETF could see many companies vying for a place in the index.

Fueled by Bitcoin’s performance this year, a wave of Wall Street-focused investment products has emerged, appealing to the growing appetite of institutional investors seeking exposure to Bitcoin and other cryptocurrencies through regulated and familiar financial instruments.

Bitwise, for example, has proposed a Bitcoin-Ethereum hybrid crypto ETF to US regulators. The ETF aims to provide investors with a balanced view between Bitcoin and Ethereum by offering a diversified approach to the two largest cryptocurrencies by market cap, according to an S-1 filing filed with the Securities and Exchange Commission on Nov. 26.

On Dec. 21, New York-based GraniteShares filed for a series of leveraged ETFs aimed at tracking leading companies with significant crypto exposure, including Riot Platforms, Marathon Digital, MicroStrategy and Robinhood.

Meanwhile, earlier this month, Grayscale Investments filed to convert Solana Trust (GSOL) into an exchange-traded fund.