Bitwise Asset Management announced the creation of a new ETF focused on companies with substantial Bitcoin reserves. The new Bitwise Bitcoin Standard Corporations ETF aims to help investors tap into the growing trend of businesses integrating Bitcoin into corporate strategies.
Features of Bitcoin Standard Corporations ETF
Unlike standard funds, this ETF will evaluate companies based on the size of their Bitcoin reserves instead of market cap. Each company's weight will be capped at 25% to maintain balance. This means companies like MicroStrategy, which holds 444,262 BTC, could have more influence in the ETF than larger market cap companies like Tesla, which holds only 9,720 BTC.
Criteria for Inclusion in the ETF
To be included in the Bitwise Bitcoin Standard ETF, a company must meet specific criteria. It must hold at least 1,000 BTC in its corporate treasury and have a market capitalization of at least $100 million. The daily liquidity must be at least $1 million with a public float below 10%. This allows the fund to focus on firms that have integrated Bitcoin into their operational strategies.
Bitcoin's Role in Corporate Strategies
Over recent years, Bitcoin is increasingly seen as a valuable asset for hedging inflation and market volatility. Companies like MicroStrategy have made Bitcoin central to their treasury strategies. Smaller firms like KULR Technology Group, which recently acquired 217.18 BTC, saw a 40% increase in their stock prices. Bitcoin’s 117% price surge in 2024 further validated its strategic value for businesses.
The initiatives by Bitwise and similar moves by other companies indicate the growing institutional interest in Bitcoin and its integration into corporate strategies. The Bitwise Bitcoin Standard ETF and Strive Bitcoin Bond ETF showcase different approaches to leveraging Bitcoin assets, underscoring its increasing role as a corporate asset.
