📢Bitwise plans to launch a new ETF focused on its Bitcoin investment goals
The renowned cryptocurrency ETF issuer Bitwise has recently submitted a new ETF to the SEC, aimed at investing in publicly listed companies that adhere to the 'Bitcoin Standard'. To qualify, the issuing company must hold at least 1,000 bitcoins.
This ETF will focus on companies with a market capitalization of at least $100 million, daily trading liquidity of $1 million or more, and private ownership of less than 10%. Bitwise plans to update its index quarterly and use public company reports to adjust the fund's holdings.
According to official documents, this new fund is different from traditional ETFs; it will allocate weights based on the amount of bitcoin held by the company, with a maximum weight of 25% for each constituent stock, ensuring that risk is not overly concentrated. Coinciding with the bitcoin investment boom and its price surge of 126% over the past year, the launch of Bitwise's new ETF also follows the momentum of bitcoin investment and price increases.
Currently, at least 30 companies globally meet these standards, including MicroStrategy, which holds over 444,000 bitcoins, as well as mainstream mining companies like Marathon Digital, Riot, Tesla, and Hut 8. These companies are primarily located in the United States, Canada, and Asia, while Japan, Hong Kong, and Thailand are increasingly becoming popular destinations for bitcoin.
As the business world’s acceptance of bitcoin grows, many companies are seeking to enhance their market value by increasing their bitcoin reserves. Bitwise CEO Hunter Horsley predicts that 2025 could be a pivotal year for widespread adoption of the Bitcoin standard by businesses.
Even KULR Technology Group, listed on the New York Stock Exchange, spent approximately $21 million to acquire 217.18 bitcoins at an average price of $96,556.53. This is only the first step of their larger strategy, as they plan to invest up to 90% of their remaining cash into bitcoin.
Meanwhile, Canadian cryptocurrency company Matador Technologies is also not lagging behind; to mitigate the impact of the depreciation of the Canadian dollar, they have approved and decided to diversify their funding reserves to increase bitcoin and USD-denominated assets. The company also plans to complete a $4.5 million bitcoin investment by December 2024 through a measured approach.
