Bitwise Asset Management has unveiled a new ETF targeting companies with significant Bitcoin reserves, reflecting the trend of Bitcoin being integrated into corporate assets.
Features of Bitcoin Standard Corporations ETF
Unlike traditional funds, the Bitwise Bitcoin Standard Corporations ETF assigns weight to companies based on their Bitcoin holdings rather than market cap. The weight of each company is capped at 25% to maintain balance. This allows companies like MicroStrategy, with large Bitcoin reserves, to have more influence in the fund than larger-cap companies with fewer Bitcoins, such as Tesla.
Criteria for Inclusion in the ETF
To be included in the ETF, a company must have at least 1,000 BTC in its treasury. It should have a market capitalization of at least $100 million, ensuring stability and significance. Additionally, the company must maintain a minimum daily liquidity of $1 million and a public free float of under 10%.
Bitcoin's Role in Corporate Strategies
Bitcoin has become a valuable asset for companies in recent years, especially during inflation and financial volatility. Companies like MicroStrategy have made Bitcoin central to their strategies, setting a precedent for others. Even smaller companies, like KULR Technology Group, have started investing in Bitcoin to enhance their stock value. The recent surge in Bitcoin's price in 2024 has further validated its strategic worth, reaching $108,000 in December.
The new ETFs from Bitwise and Strive signify the growing institutional interest in Bitcoin, acknowledging its role as a major corporate asset.
