• On December 26, Bitwise filed for the Bitwise Bitcoin Standard Corporations ETF with the US SEC.
  • Companies following the “Bitcoin Standard” and holding 1000 Bitcoins would be part of this fund.
  • Strive Asset Management has also filed for a Bitcoin Bond ETF.

Bitwise, a renowned asset management firm, has filed for a new exchange-traded fund (ETF). This newly proposed fund is named Bitwise Bitcoin Standard Corporations ETF and was announced on December 26. 

The proposed launch aims to capitalize on the growing trend of Bitcoin holdings among publicly traded companies. 

The Key Objective of the Filed Bitwise ETF

The primary objective of Bitwise’s ETF is to invest in companies holding a substantial amount of Bitcoins in their treasury. The Bitcoin holding will be proof of those companies’ commitment to cryptocurrencies as a strategic asset.

Per the December 26 regulatory filing, it will only list stocks of companies that have adhered to the “Bitcoin standard.” Adhering to this standard means those firms should have at least 1000 Bitcoins in their fold.

Source: X

The index will include top giants, such as MicroStrategy (MSTR), Marathon Digital (MARA), Coinbase (COIN), and Tesla (TSLA). Moreover, Semler Scientific (SMLR), Metaplanet (MTPLF), and others can be found on the list in the future. 

All companies chosen for inclusion in the Index are classified as “Bitcoin Standard Corporations”. Furthermore, the fund plans to allocate at least 80% of its net assets to equity securities issued by Bitcoin Standard Corporations.

The Fund will not make direct Bitcoin investments or indirectly through Bitcoin-related derivatives. Its holdings will comprise equity assets in common stock and depositary receipts. That involves American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), 

Criteria for Inclusion

Bitwise has outlined some criteria for companies to get included in the fund. The Index selects firms that comply with the size, liquidity, and free float requirements.

To qualify for the inclusion, companies must have a market capitalization of at least $100 Million. They should also hold the daily liquidation of at least $1 Million and a public float of at least 10%.

The Bitwise ETF will give preference to the value of a company’s Bitcoin holdings when calculating the weight of each stock. To maintain diversification, individual holdings are capped at 25%. 

As a result, Tesla will have a lower fund weight than MicroStrategy. Tesla has a market capitalization of $1.42 Trillion and possesses 9,720 BTC in its treasury. Microstrategy, on the other hand, has a $83.5 Billion market value, and it owns 444,262 Bitcoins at press time.

Reaction from Industry Leaders on Bitwise Filing

Since the announcement, the Bitwise ETF has attracted the attention of many Industry leaders. Mamy heavyweights have expressed interest in participating in the new fund by Bitwise. 

Fred Theil, Marathon Digital’s CEO, commented on this development. He stated, ” I assume MARA would have to be included as we hold over 44,000 BTC in our treasury”.

Following Theil’s remark, Metaplanet CEO Simon Gerovich also expressed positive sentiments. He revealed that his company would also be a part of this fund. He mentioned, “Metaplanet is a Bitcoin standard company with at least 1000 BTC in its corporate treasury”.

Amid all of this, Vivek Ramaswamy’s Strive Asset Management has filed for a Bitcoin Bond ETF. It is intended to provide exposure to the developing convertible bond market for corporations having Bitcoin treasuries.