Key Takeaways:
- New ETF Focus: Bitwise proposes the “Bitcoin Standard Corporations ETF,” investing in firms with at least 1,000 BTC in their treasuries, weighted by Bitcoin holdings rather than market cap.
- Eligibility Criteria: Firms must have a $100M market cap, $1M daily liquidity, and a public free float under 10%.
- Rising Bitcoin Adoption: With Bitcoin’s 117% YTD surge, companies like MicroStrategy and Tesla are leading the trend, and others like KULR Technology are following suit with significant BTC purchases.
Bitwise has proposed a new ETF targeting companies with significant Bitcoin holdings.
Named the Bitwise Bitcoin Standard Corporations ETF, it will include publicly traded firms holding at least 1,000 BTC in their corporate treasuries.
Bitwise files for Bitcoin Standard Corporations ETF…
— Nate Geraci (@NateGeraci) December 26, 2024
Would own stocks of companies that have adopted the “bitcoin standard”, which they define as holding at least 1,000 btc in corporate treasury.
The btc treasury operations virus is spreading. pic.twitter.com/me0XXX9a6g
The ETF applies criteria such as a minimum $100 million market capitalization, $1 million daily trading liquidity, and less than 10% public free float.
Unlike traditional ETFs, it will weigh stocks based on the Bitcoin market value each firm holds, capping company weight at 25%.
MicroStrategy, with 444,262 BTC, would outweigh Tesla, which holds 9,720 BTC, despite Tesla’s larger market cap.
Bitcoin’s 117% year-to-date surge, peaking at $108,000 before stabilizing at $95,800, reflects rising corporate adoption.
Recent examples include KULR Technology Group’s $21 million Bitcoin purchase, boosting its stock by 40%.
Meanwhile, Strive filed for a separate ETF focusing on convertible “Bitcoin Bonds” from firms like MicroStrategy.
These developments highlight growing interest in integrating Bitcoin into corporate treasuries and financial products amid its price volatility and record-setting highs.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: