Bitwise Launches Bitcoin Standard Corporations ETF (OWNB) Targeting Companies Holding BTC as Treasury Reserves

Seems Bitcoin is becoming a corporate standard. And the latest instance of this emerging trend comes from Bitwise, a leading crypto asset manager, that just introduced the Bitwise Bitcoin Standard Corporations ETF (OWNB) focused on companies holding Bitcoin as treasury reserves.

Among the emerging trends of 2024, one that has been developing steadily is the increasing adoption of Bitcoin (BTC) by corporations as a treasury reserve asset.

Now, Bitwise, a leading crypto asset manager, has unveiled the Bitwise Bitcoin Standard Corporations ETF (OWNB), an ETF focused on companies that hold Bitcoin in their treasuries.

This ETF tracks publicly listed companies that have at least 1,000 Bitcoin as part of their financial holdings, of which Bitwise has now identified over 70.

Holdings are weighted based on the amount of Bitcoin each company owns, with a 20% cap per company to ensure diversification. The ETF is also rebalanced quarterly to reflect any changes in companies' Bitcoin holdings and valuations.

The launch of OWNB comes as part of a broader trend of institutions and government bodies increasingly using Bitcoin as a strategic reserve to help mitigate the effects of inflation and currency fluctuations.

Cases range from the U.S. government forming a strategic Bitcoin reserve to Sunnyvale’s Public Safety Officers’ Association becoming the first police and fire department in the U.S. to hold Bitcoin.

"This ETF provides investors with a unique opportunity to participate in the growing trend of corporations adopting Bitcoin as a treasury asset," said Ben Cruikshank, president and co-founder of Bitwise.

"We believe that OWNB will be a valuable addition to any investment portfolio, offering a diversified and liquid way to track the performance of some of the world's largest and most innovative companies."

Investors can now gain indirect exposure to Bitcoin's performance through OWNB, which may be appealing to those who prefer the presence of clear regulations and reduced volatility compared to direct cryptocurrency investments.

Founded in 2017, Bitwise is known for its focus on creating institutional-grade investment products in the cryptocurrency space, including crypto index funds and ETFs.

The company launched one of the first U.S.-approved spot Bitcoin ETFs in January 2023, and it is also behind one of the first and largest crypto index funds, which tracks the top 10 cryptocurrencies by market capitalization.