Bitwise Launches New Bitcoin (BTC) ETF Targeting Companies Holding at least 1,000 BTC

Crypto asset manager Bitwise Asset Management, overseeing $12 billion in client assets, has announced the launched the Bitwise Bitcoin Standard Corporations ETF OWNB on NYSE Arca

Crypto asset manager Bitwise Asset Management, which manages $12 billion in client assets, has launched the Bitwise Bitcoin Standard Corporations ETF (NYSE: OWNB) on NYSE Arca. The ETF is designed to provide investors with exposure to a basket of companies that hold at least 1,000 Bitcoin (BTC) in their corporate treasuries.

The ETF tracks the Bitwise Bitcoin Standard Corporations Index, which includes over 70 publicly traded firms known for their substantial Bitcoin holdings. The index weights firms based on the amount of Bitcoin they own, with the largest holding, MicroStrategy (NASDAQ:MSTR), being capped at 20% to ensure optimal diversification.

The remaining companies, including MARA (NYSE:MARA), CleanSpark (NASDAQ:CLSK), Riot Platforms (NASDAQ:RIOT), Boyaa Interactive (H.K.EX:9903), Metaplanet (3350), Aker (NYSE:AKR), Bitfarms (NASDAQ:BITF), BitFuFu (NASDAQ:FUFU), and Galaxy Digital (TSX:GLXY), are assigned weightings of 1.5%.

Corporations with Bitcoin holdings exceeding 1,000 BTC but constituting less than one-third of their balance sheet are assigned a 1.5% weighting. The index is rebalanced quarterly, and any changes are announced in advance to maintain transparency.

Bitwise explained that these companies are shifting their treasury assets to Bitcoin as they seek to diversify cash reserves amid economic uncertainty.

According to the Federal Reserve, U.S. nonfinancial corporations held over $4.5 trillion in cash and deposits as of 3Q2024.

“Companies are sitting on $5 trillion in low-yielding cash today, and many are recognizing Bitcoin’s value as a strategic reserve asset,” Bitwise stated in a post on X.

The company added that firms view Bitcoin as a hedge against monetary policy risks, such as the U.S. government’s $2 trillion annual deficit.

The ETF does not invest directly in Bitcoin or through derivatives. Instead, it offers investors exposure to the financial performance of these Bitcoin-holding companies.

“Individuals have understood the Bitcoin standard for years. Now, more and more corporations do, too,” Bitwise stated in its announcement, highlighting the growing acceptance of Bitcoin as a corporate asset.

The launch of the Bitwise Bitcoin Standard Corporations ETF follows the filing of the product with the SEC in December.

This initiative underscores the broader trend of corporate Bitcoin adoption, with companies like MicroStrategy leading the charge by holding 499,096 BTC, which is valued at over $41 billion.

The ETF, which is distributed by Foreside Fund Services, LLC, aims to provide a regulated investment vehicle for those seeking indirect exposure to Bitcoin’s market dynamics through corporate equity.

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This article is written with the assistance of AI.

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