Bitwise Files for ETF Targeting Companies with Significant Bitcoin Holdings

Bitwise Files for ETF Targeting Companies with Significant Bitcoin Holdings

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Bitwise, a leading issuer of exchange-traded funds (ETFs), has submitted a proposal to launch a fund targeting companies with significant Bitcoin reserves.

The fund, called Bitwise Bitcoin Standard Corporations ETF, will focus on publicly traded companies that have at least 1,000 bitcoins in their corporate vaults. The move comes amid growing interest in Bitcoin among institutional players who are adopting so-called… “Bitcoin standard“.

According to Submitted December 26Eligible companies must meet strict criteria, including a market capitalization of at least $100 million, average daily liquidity exceeding $1 million, and free float of less than 10%.

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The Bitwise ETF prioritizes Bitcoin holdings over market capitalization

The ETF stands out by weighting investments based on the market capitalization of Company Bitcoin holdings instead of the total market capitalization, up to a maximum of 25%.

For example, MicroStrategy, which owns 444,262 BTC, would have a greater weighting in the ETF than tesla, Although Tesla It has a much larger market cap, as it holds a relatively modest amount of 9,720 BTC.

Deposit coincides with Bitcoin The recent uptick in performance, topping six figures for the first time in November before stabilizing at around $95,800.

Companies like MicroStrategy have become synonymous with enterprise-level Bitcoin adoption, while new entrants like KULR Technology Group have joined the trend.recently acquired 217.18 Bitcoin for $21 million. This led to the purchase To 40% jump KULR’s Share price.

On the same day, Strive Asset Management, founded by Vivek Ramaswamy, applied for regulatory approval to launch an exchange-traded fund (ETF) focused on… “Bitcoin bonds.”

These bonds As detailed in the December 26 filing, they include convertible securities issued by companies like MicroStrategy or others that intend to allocate the proceeds mostly to bitcoin purchases.

The Strive Bitcoin Bond ETF will do just that To be actively managedproviding direct exposure to these bonds or through financial derivatives such as swaps and options. However, details regarding the management fees are yet to be revealed It has been detected.

MicroStrategy, a major player in this trend, has spent nearly $27 billion on Bitcoin since 2020. As part of the company’s treasury strategy initiated by co-founder Michael Saylor.

This aggressive Bitcoin acquisition strategy has been launched Microstrategy MSTR stock posted an extraordinary 2,200% gain, outpacing almost all major public companies except Nvidia.

Other companies have also embraced bitcoin for their Treasuries, with total corporate holdings now estimated at $56 billion, according to BitcoinTreasuries.net.

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US Bitcoin ETFs see $475 million in inflows after a four-day series of outflows

Bitcoin exchange-traded funds (ETFs) in the United States recorded a massive inflow of $475.15 million on December 26, breaking a four-day streak of outflows that saw more than $1.5 billion leaving these funds.

(source)

Data from SoSoValue appears Which Sincerity FBTC led inflows with $254.37 million, followed by ARK 21 shares ARKB, which attracted $186.94 million.

Black Rock IBIT contributed $56.51 million, while smaller inflows from Grayscale Bitcoin Mini Trust and Van Eyck HODL added to the positive momentum.

However, these gains were slightly offset by outflows Grayscale GBTC and Bitwise BITB, which saw withdrawals of $24.23 million and $8.32 million, respectively.

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