By CentBit.Online – Crypto & Blockchain Expert, Bangladesh
Bitwise Asset Management has taken a significant step towards introducing an innovative exchange-traded fund (ETF) that targets companies holding substantial Bitcoin reserves. Filed on December 26, the proposed Bitwise Bitcoin Standard Corporations ETF aims to invest in publicly traded firms with at least 1,000 BTC in their corporate treasury.
Key Criteria for Inclusion
According to the regulatory filing, companies must meet the following requirements to be eligible for the ETF:
- Minimum Bitcoin Reserves: 1,000 BTC
- Market Capitalization: At least $100 million
- Average Daily Liquidity: $1 million or more
- Public Float: At least 10%
The ETF will prioritize weighting stocks based on the value of their Bitcoin holdings. To ensure diversification, no single stock will account for more than 25% of the fund’s total weight.
Bitcoin’s Growing Corporate Adoption
The filing comes amid a surge in Bitcoin adoption by corporations seeking to enhance their value proposition. In 2024, Bitcoin’s price skyrocketed by 117%, briefly surpassing $100,000 in November before stabilizing around $95,800.
One notable example is KULR Technology Group, which recently purchased 217.18 BTC worth $21 million on December 16. Following the announcement, KULR’s stock price soared over 40%, closing at an all-time high of $4.80.
Competing Innovations in Bitcoin Investment
In addition to Bitwise, other investment firms are exploring creative ways to incorporate Bitcoin into financial products. Strive, an investment firm led by Vivek Ramaswamy, has also filed for a “Bitcoin Bonds” ETF. This fund will focus on convertible bonds issued by Bitcoin-heavy companies like MicroStrategy.
Conclusion
As Bitcoin continues to gain traction in corporate treasuries, ETFs like the Bitwise Bitcoin Standard Corporations ETF could play a pivotal role in bridging traditional finance and the cryptocurrency market. Stay updated with CentBit.Online for expert insights into the evolving blockchain and crypto landscape in Bangladesh and beyond.
