Bitwise proposes a new ETF to invest in companies with 1,000 BTC or more

The prominent issuer of crypto exchange-traded funds (ETFs) has proposed a new product called the Bitcoin Standard Corporations ETF, which aims to invest in publicly traded companies that adhere to a “Bitcoin Standard,” with at least 1,000 BTC in their corporate treasures.

The ETF will focus on companies with a market capitalization of at least $100 million, daily trading liquidity of $1 million or more and less than 10% of their shares privately owned. Bitwise plans to update its index quarterly, using public corporate reports to adjust the fund’s holdings.

Bitcoin Standard Corporations ETF

According to the official filing, unlike traditional ETFs, which base share weights on companies’ market caps, Bitwise’s new fund will assign a weight based on the market value of each company’s Bitcoin holdings, with a maximum weight of 25% per constituent to ensure a balanced balance. exhibition This initiative comes amid growing interest in Bitcoin investment products, fueled by BTC prices rising 126% over the past year.

The data reveals that at least 30 companies worldwide meet these criteria. This includes prominent Bitcoin holders such as MicroStrategy, with over 444,000 BTC, and mining companies such as Marathon Digital, Riot, Tesla and Hut 8. These companies are mainly based in the US, Canada and Asia, with Japan, Hong Kong and Thailand also emerging as key players in Bitcoin adoption.

The proposal comes amid growing corporate adoption of Bitcoin, as many companies seek to boost stock value by integrating Bitcoin into their treasuries. On that note, Bitwise CEO Hunter Horsley commented:

“It looks like 2025 will be a big year for new companies to adopt the Bitcoin standard.”

Companies Adopting Bitcoin

The latest to dip its toes is NYSE-listed KULR Technology Group, which bought 217.18 Bitcoins for roughly $21 million, starting its Bitcoin hoard with an average purchase price of $96,556.53 per BTC. This acquisition is the first step in a larger strategy to invest up to 90% of its surplus cash in Bitcoin through future purchases.

Earlier this week, Matador Technologies approved a strategic move to diversify its corporate treasury by adding Bitcoin and USD-denominated assets in order to reduce risks associated with the potential devaluation of the Canadian dollar. The company plans to invest $4.5 million in Bitcoin by December 2024 and may continue acquisitions through measured programs.

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