Leading investment firms Bitwise and Strive have applied for new ETFs, targeting companies with large Bitcoin reserves and convertible securities.
Bitwise's Bitcoin Standard Corporations ETF
Bitwise has filed with the U.S. Securities and Exchange Commission to create an ETF investing in companies holding at least 1,000 Bitcoins. To be eligible, companies must have a market capitalization of over $100 million, daily liquidity of $1 million, and less than 10% private ownership. Interestingly, the fund will use a weighting methodology based on the value of Bitcoin, meaning companies with larger Bitcoin reserves will have more significant positions in the ETF.
Institutional Interest and ETF Innovations
This move reflects growing institutional interest in cryptocurrencies. The fund will allow investors to focus on companies actively incorporating Bitcoin into their financial strategies, rather than merely holding it on their balance sheet. Such an emphasis on the functional role of Bitcoin in corporate strategy development differentiates the fund from existing ETFs.
Strive's New Bitcoin Bond ETF Filing
In addition to Bitwise's application, asset management firm Strive, co-founded by Vivek Ramaswamy, has filed for a Bitcoin Bond ETF. This product will hold convertible securities from companies like MicroStrategy, which heavily invest in Bitcoin. Unlike Bitwise's ETF, this is a 'non-diversified' offering, allowing more significant investments in specific companies without a fixed weighting scheme.
Bitwise and Strive's efforts to launch new ETFs underscore increasing interest in cryptocurrencies among institutional investors and demonstrate innovations in the structure and focus of investment products.
