Bitwise Asset Management has filed with the SEC to launch the Bitcoin Standard Corporations ETF, aimed at public companies holding at least 1,000 Bitcoin. This new ETF will focus on equity securities of firms that meet specific criteria, including a minimum Market capitalization of $100 million, and will allow for a unique weighting based on Bitcoin holdings rather than Market cap. Recent interest in Bitcoin has surged, with the cryptocurrency’s price climbing 117% this year. The ETF will be non-diversified and will rebalance quarterly to align with Market conditions. Pending SEC approval, it is set to trade on NYSE Arca, complementing Bitwise’s existing Bitcoin ETFs.
Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) to introduce the Bitcoin Standard Corporations ETF. This new exchange-traded fund (ETF) aims to focus on public companies that hold at least 1,000 Bitcoin in their corporate treasuries.
Key Features of the ETF
– The ETF will invest in companies based on their Bitcoin holdings rather than their Market capitalization, making it unique in its approach.
– Bitwise plans to emphasize equity securities of firms with a minimum Market capitalization of $100 million and daily liquidity of at least $1 million.
– The ETF will limit individual company investments to 25% of the portfolio to maintain diversity.
This filing comes at a time when Bitcoin has surged in popularity, gaining around 117% in value this year. Currently, Bitcoin’s price sits around $95,500 after briefly exceeding $108,000.
Growing Corporate Interest
More companies are showing interest in Bitcoin, as seen through KULR Technology Group’s recent Bitcoin acquisition of $21 million, which significantly boosted its stock price.
The ETF will operate as a non-diversified fund, likely concentrating its assets in a smaller number of companies than typical diversified ETFs. This means investors could see significant changes in portfolio performance, depending on Bitcoin’s Market movements.
Quarterly rebalancing will ensure the ETF aligns with changing Market conditions and variations in each company’s Bitcoin holdings. If approved by the SEC, this ETF will trade on NYSE Arca.
In addition to this ETF, Bitwise has an existing Bitcoin ETF with assets of approximately $3.9 billion.
For investors looking to tap into the crypto wave, this ETF could be a notable option as it targets companies with substantial Bitcoin assets, amidst growing corporate engagement with cryptocurrency.
Stay tuned for more updates as this story develops.
What is the Bitwise Files ETF?
The Bitwise Files ETF is an exchange-traded fund that invests in Bitcoin and related assets. It’s designed for firms that hold over 1,000 BTC, letting them participate in the crypto Market while managing risks.
How does the Bitwise Files ETF benefit firms holding Bitcoin?
Firms can diversify their investments without dealing directly with Bitcoin. With the ETF, they can adjust their portfolio easily, potentially improving returns while reducing the risk associated with holding large amounts of Bitcoin.
Is the Bitwise Files ETF regulated?
Yes, the Bitwise Files ETF is regulated under U.S. laws. This means it has to follow strict guidelines, providing some safety for firms that want to invest in Bitcoin through an ETF.
What are the risks associated with the Bitwise Files ETF?
Like any investment in Bitcoin, there are risks. The price of Bitcoin can be very volatile, which can affect the value of the ETF. Firms should understand these risks before investing and consider their financial situation.
How can firms invest in the Bitwise Files ETF?
Firms can invest in the Bitwise Files ETF through a brokerage account, just like with any other ETF. This makes it simple for larger holders of Bitcoin to get involved in a structured way without having to manage individual assets directly.
