Key Takeaways
Bitwise Asset Management has submitted a proposal to the SEC to launch the Bitcoin Standard Corporations ETF. This ETF will include publicly traded companies that hold at least 1,000 Bitcoin in their corporate treasuries, and the portfolio holdings will be weighted based on the companies’ Bitcoin holdings rather than their market capitalization. The ETF will have a 25% cap on individual constituents. For example, MicroStrategy, with its 444,262 Bitcoin holdings, will have a larger allocation than Tesla, despite Tesla having a higher market cap.
The filing comes at a time when Bitcoin has experienced a 117% increase in value this year, briefly reaching over $108,000 before settling around $95,500. The growing interest in Bitcoin by corporations is evident, with KULR Technology Group recently purchasing $21 million worth of Bitcoin, resulting in a 40% increase in its stock price.
The proposed ETF will be classified as non-diversified, meaning it may concentrate its investments in fewer companies than diversified funds. The fund will be rebalanced quarterly to align with market conditions and changes in constituent companies’ Bitcoin holdings. Pending SEC approval, the ETF will trade on NYSE Arca. This filing follows a similar submission by Strive for an ETF focused on convertible bonds of Bitcoin-heavy firms.
This new filing complements Bitwise’s existing BTC ETF, which currently has net assets of approximately $3.9 billion and shares trading around $51.86, according to Bitwise data.
