Bitwise Asset Management introduced a new exchange-traded fund (ETF) based on firms that have large Bitcoin reserves. Bitwise Bitcoin Standard Corporations ETF targets firms that have a minimum of 1,000 BTC in their corporate coffers.
The ETF is based on the Bitwise Bitcoin Standard Corporations Index, which ranks corporations based on their Bitcoin holdings. The top 10 holdings initially were MicroStrategy (20.87%), MARA Holdings (12.12%), CleanSpark (6.26%), and Riot Platforms (6.23%).
Other names on the list are Boyaa Interactive, Metaplanet, Aker ASA, Bitfarms, BitFuFu, and Galaxy Digital. The holdings may change as the fund rebalances, according to the press release.
Index enforces strict Bitcoin ownership criteria
The index enforces strict criteria. Companies must own at least 1,000 BTC to qualify. Holdings are weighted by the amount of Bitcoin owned but capped at 20% for diversification. Firms with BTC holdings below 33% of total assets receive an automatic 1.5% weighting. The index rebalances quarterly.
As of Q3 2024, there is over $4.5 trillion cash and nearly $1 trillion in Treasuries held by nonfinancial corporations in the United States. Companies are turning to other repositories, and Bitcoin is an attractive one. Bitcoin is scarce, liquid, and not under the control of government policy, unlike traditional reserves.
Bitwise’s new ETF allows investors to gain exposure to firms embracing BTC as a strategic asset. In contrast to direct Bitcoin funds, the ETF will not invest in the digital currency or derivatives. Instead, it will invest in companies that have BTC on their balance sheets.
Bitwise, which was launched in 2017, manages $12 billion in client assets. The company provides investment products, content, and advice to financial advisors. It continues to add to its lineup of crypto-related investment products as interest in BTC exposure continues to grow.
