Bitwise Files for Bitcoin Standard Corporations ETF, Investing in Companies With Significant Bitcoin Reserves, Offering New Investment Opportunities

Bitwise, a popular exchange-traded fund (ETF) issuer, has filed to launch a new fund focused on companies that hold significant amounts of Bitcoin.

ETF issuer Bitwise has filed to launch a new fund that will invest in companies that hold significant amounts of Bitcoin, according to a recent SEC filing. The new ETF, dubbed the Bitwise Bitcoin Standard Corporations ETF, will be designed to track the performance of a basket of U.S. companies that have adopted the ‘Bitcoin standard’ and have at least 1,000 Bitcoin in their corporate reserves.

To be included in the ETF, companies must meet certain criteria, such as having a minimum of 1,000 BTC in their corporate treasury. The company must also be valued at a minimum of $100 million and have an average of $1 million in average daily liquidity. Finally, the company must have a public float of at least 10%.

The new ETF will also differ from other ETFs in how it weights its holdings. Most ETFs weight a company according to its market capitalization, but Bitwise will calculate its weight based on the amount each company has in Bitcoin reserves. Each company's weight in the fund will be capped at 25%.

For instance, the ETF would have had a weighted investment in Tesla at $1.42 trillion and 9,720 Bitcoin, while MicroStrategy, boasting 444,262 Bitcoin but a mere $83.5 billion market value, would have been weighted more heavily. As MicroStrategy holds such a large number of Bitcoin compared to Bitwise, Bitcoin makes up a much larger part of the ETF.

Investors will gain a new avenue of investing in companies that hold Bitcoin as a key component of their financial strategy through the Bitwise Bitcoin Standard Corporations ETF. This ETF specifically identifies firms that have Bitcoin on their balance sheets and believe in its value.

If this ETF is eventually approved, investors will have a new investment opportunity. Additionally, it highlights Bitcoin's growing integration into the business world, with more companies recognizing and applying Bitcoin to their financial strategy.