#BitwiseBitcoinETF
Bitwise has introduced an ETF that tracks the stocks of companies with large Bitcoin treasuries.
Bitwise has applied to launch an ETF that would invest in publicly traded large-cap companies with at least one thousand bitcoins on their balance sheets.
The exchange-traded fund (ETF) issuer Bitwise has filed to launch a new fund that would hold shares of publicly traded companies that have significant Bitcoin reserves on their books.
The Bitwise Bitcoin Standard Corporations ETF would invest in companies 'that have adopted the Bitcoin standard' and that hold at least 1,000 Bitcoin in their corporate treasuries, according to a regulatory filing made on December 26.
Companies that own Bitcoin would also need to have a market capitalization of at least $100 million, an average daily liquidity of at least $1 million, and a public float of less than 10% to be included in the ETF.
Unlike other ETFs, which generally weight stock holdings according to the company's market capitalization, the Bitwise fund would weight its assets based on the market value of the company's Bitcoin treasuries, with a maximum weight limit of 25%.
This would mean, for example, that Tesla, with its market capitalization of $1.42 trillion, would have less weight in the Bitwise ETF than MicroStrategy, which has a market capitalization of $83.5 billion, as Tesla holds 9,720 BTC compared to MicroStrategy's 444,262 BTC.