Bitwise Reveals New ETF Tied to Bitcoin-Holding Companies

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Bitwise Reveals New ETF Tied to Major Corporate Bitcoin Reserves

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 27, 2024

Key Takeaways

Bitwise proposes an ETF focused on companies holding at least 1,000 Bitcoin, prioritizing Bitcoin reserves over market size;
The ETF caps any company’s weight at 25%, with firms like MicroStrategy outweighing Tesla due to larger Bitcoin holdings;
Eligible companies need a $100 million market value, a $1 million daily trading volume, and limited public share availability.

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Bitwise Reveals New ETF Tied to Major Corporate Bitcoin Reserves

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Bitwise has proposed a new exchange-traded fund (ETF) that focuses on businesses holding large amounts of Bitcoin BTC $89,529.92 in their corporate reserves.

According to the proposal filed on December 26, the Bitwise Bitcoin Standard Corporations ETF would include companies with at least 1,000 Bitcoin in their treasury.

The announcement comes as public companies increasingly add Bitcoin to their treasuries, often to attract investors. This year alone, Bitcoin has gained over 100% in value, further boosting its appeal.

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What sets this ETF apart is how it assigns weight to companies. Instead of focusing on their market size, the fund would rank companies based on the value of their Bitcoin holdings. No company could represent more than 25% of the fund’s value, ensuring diversification.

For example, MicroStrategy, which holds over 444,000 Bitcoin, would carry more weight in the ETF than Tesla, which has less than 10,000 Bitcoin despite being a much larger company overall.

Under Bitwise’s structure, MicroStrategy would have a larger share of the ETF because of its large Bitcoin holdings.

To qualify, these Bitcoin-holding companies must also have a market value of at least $100 million, an average daily trading volume of over $1 million, and fewer than 10% of their shares available for public trading.

Bitwise’s filing coincided with another ETF proposal from Strive Asset Management, a company founded by Vivek Ramaswamy. Recently, the company has sought approval for its Bitcoin Bond ETF. What makes Strive's Bitcoin Bond ETF stand out? Read the full story.