Bitwise Takes Aggressive Stance on Bitcoin, Files for ETF Targeting Firms Significantly Exposed to BTC

The submission of the Bitwise Bitcoin Standard Corporations ETF, which was originally intended to focus on firms holding large reserves of Bitcoin — such as MicroStrategy and Tesla — reflects the growing mainstream acceptance of Bitcoin as a treasury asset.

Bitwise Asset Management filed for a Bitcoin-focused exchange-traded fund (ETF) on Monday, aiming to provide investors with exposure to businesses that are heavily invested in the leading cryptocurrency.

The Bitwise Bitcoin Standard Corporations ETF will track the performance of an index composed of business corporations that have significant exposure to Bitcoin. The ETF will focus on companies that hold more than 1,000 Bitcoin and have strong liquidity and trade volume. However, the ETF will be weighted by the amount of Bitcoin a company has, with a maximum allocation of 25% for any single company.

The ETF is designed to provide investors with a way to gain exposure to the growth of Bitcoin without having to invest directly in the cryptocurrency. The ETF will be managed within the constraint of fixed weighting of dollar exposure, aiming to enhance the appeal of a completely new kind of asset class ETF.

Companies engaging in Bitcoin operations with at least a $100 million market capitalization, a minimum daily liquidity of $1 million, and a free float of less than 10% will be eligible for the ETF. The ETF will be listed on the NYSE Arca exchange.

This move comes amid a wave of institutions investing in Bitcoin. Earlier this year, BlackRock, the world's largest asset manager, filed for a Bitcoin private trust with the SEC. The SEC also approved two Bitcoin futures ETFs in October.

Institutions are increasingly viewing Bitcoin as a treasury asset, and the approval of this ETF would mark a significant step in the mainstream acceptance of cryptocurrency.