Bitwise has announced a new Bitcoin Standard Corporation ETF proposal, providing Bitcoin exposure to its users. Unlike the usual Bitcoin exchange-traded funds (ETFs), the investment vehicle will target firms that hold a considerable amount of Bitcoin and are worth investing in. The firm will specifically target firms holding above 1,000 BTC, with its focus on value rather than market cap.
The Bitwise proposal is coming at a time when Bitcoin just crossed $100k for the first time, putting up a 117% performance for the year. Bitcoin also hit a new all-time high in December, notching $108k at the beginning of the month. Public companies have also leveraged the opportunity, with companies like Microstrategy using the crypto wave to boost their stock.
Bitwise wants to focus on Bitcoin firms
ETF Store president Nate Geraci revealed that Bitwise had already filed for a Bitcoin Standard Corporation ETF for the proposal. He also noted that the BTC ETF adoption is spreading, with firms looking for new ways to adopt it. For the proposal, the firms of interest would need to hold about 1,000 BTC in their treasuries amid other financial thresholds including $100 million in market cap and liquidity.
The weighing formula is also targeted at the firm’s Bitcoin holding market value, which is capped at 25% per firm. In this case, companies like Microstrategy, who hold a higher Bitcoin balance will dominate ahead of Tesla, despite the latter being bigger compared to the former. Bitwise is not the only innovative player, with Vivek Ramaswamy-owned Strive also filing for a Bitcoin Bonds ETF.
The fund will focus on convertible bonds from firms dabbling in Bitcoin like Microstrategy. With public corporations now bullish on BTC, it is now becoming more than a speculative asset. Most firms are now purchasing the asset, with the move resulting in a big move for their stocks.
Bitcoin’s struggles in the market
Despite Bitcoin’s record-breaking year, its rally looks to have stalled a little bit. With the asset already above the $100k mark, it is now trading close to $96,000. The recent rally was made possible through Trump’s influence amid anticipation of a pro-crypto administration. With the appointment of several pro-crypto individuals in the financial sector, users are anticipating a big 2025.
The market is set for a choppy end of the year with more than $17.8 billion in BTC and ETH options set to expire on Deribit. Meanwhile, Microstrategy is expected to continue its Bitcoin accumulation heading into the new year. Despite this, Bitcoin could see red before the year ends, after posting its first monthly loss in four months. Investors are also taking profits, with the benchmark most set now being actualized.
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