Bitwise has filed an application to create an exchange-traded fund (ETF) that invests in the stocks of public companies with large bitcoin holdings. This information appeared in the application submitted to the U.S. Securities and Exchange Commission (SEC).$BTC $ETH $XRP
The Bitwise Bitcoin Standard Corporations ETF will include companies that hold at least 1,000 bitcoins in their corporate reserves and have a market capitalization of over $100 million. Companies must also meet liquidity criteria and the proportion of shares in free circulation.
The weight of stocks in the ETF will depend on the value of their bitcoin reserves, not market capitalization. However, it will not exceed 25%. For example, MicroStrategy with 444,262 bitcoins will have a greater weight than Tesla with 9,720 bitcoins.
A similar initiative was announced by Strive, a company founded by entrepreneur and Donald Trump ally Vivek Ramaswamy. Its representatives have submitted an application to launch an exchange-traded fund (ETF) that invests in the convertible bonds of companies like MicroStrategy. This is stated in the application submitted to the SEC.
The Strive Bitcoin Bond ETF will be managed and provide access to 'bitcoin bonds' - convertible securities that companies use to purchase cryptocurrency.
MicroStrategy, which has adhered to a bitcoin investment strategy since 2020, has purchased BTC worth $27 billion, leading to a 2,200% increase in the company's stock. The company's bonds offer low or zero interest, but they cannot be converted into shares. Strive plans to use financial derivatives such as options and swaps to expand access to the securities of interested organizations.
