Bitwise, a prominent crypto exchange-traded fund (ETF) issuer, has filed a proposal for a new product called the Bitcoin Standard Corporations ETF, which will invest in publicly traded companies that hold at least 1,000 BTC in their corporate treasuries.
New ETF to Focus on Bitcoin-Holding Companies
The proposed ETF will focus on firms with a market capitalization of at least $100 million, daily trading liquidity of $1 million or more, and less than 10% of their stock privately held. The fund will update its index quarterly, using public corporate reports to adjust its holdings. Unlike traditional ETFs, the Bitcoin Standard Corporations ETF will assign weight based on the market value of each company’s Bitcoin holdings, with a maximum weight of 25% per constituent.
Growing Interest in Bitcoin Investment Products
The proposal comes amid increasing interest in Bitcoin investment products, fueled by rising BTC prices – up 126% over the past year. At least 30 companies worldwide meet the ETF’s criteria, including prominent Bitcoin holders such as MicroStrategy, Marathon Digital, and Tesla.
Corporate Adoption of Bitcoin on the Rise
Bitwise CEO Hunter Horsley commented, “It feels like 2025 will be a big year for new corporates adopting the Bitcoin Standard.” Recent examples of corporates embracing Bitcoin include KULR Technology Group, which has bought 217.18 Bitcoin for approximately $21 million, and Matador Technologies, which plans to invest $4.5 million in Bitcoin by December 2024.
Increasing Global Adoption
The growing corporate adoption of Bitcoin is a global trend, with companies in the US, Canada, Asia, Japan, Hong Kong, and Thailand integrating Bitcoin into their treasuries. As more companies seek to boost stock value by holding Bitcoin, the proposed ETF is likely to attract significant interest from investors.
Source: Cryptopotato.com
