ETF issuer Bitwise has filed to launch a new fund that would invest in stocks of publicly traded companies with substantial Bitcoin holdings.
Bitwise's New Offering
The Bitwise Bitcoin Standard Corporations ETF would invest in firms that have adopted the 'Bitcoin standard' and hold at least 1,000 Bitcoin in their corporate treasuries, according to a December 26 regulatory filing.
How the New ETF Works
The Bitcoin-holding firms must have a market capitalization of at least $100 million, a minimum average daily liquidity of $1 million, and a public free float under 10%. Unlike other ETFs, Bitwise’s fund will assign weight to its holdings based on the market value of the firm’s Bitcoin treasuries, capped at a max weight of 25%.
Current Market Trends and Bitcoin
Amid a wave of public companies buying Bitcoin to boost stock prices, Bitcoin recently surpassed the six-figure mark. KULR Technology Group is the latest public firm to buy Bitcoin, spending $21 million.
Companies continue to show interest in Bitcoin, using the cryptocurrency as a tool to bolster their market positions. Bitwise’s new ETF could redefine how investors evaluate firms with substantial digital currency reserves.
