Bitwise, one of the largest asset managers in the U.S., has filed for clearance to launch an ETF tracking the performance of companies holding bitcoin as a reserve asset. The instrument, called Bitwise Bitcoin Standard Corporations ETF, would own stocks of companies having more than 1,000 BTC.
Bitwise Pursues Approval for Groundbreaking Bitcoin Standard Corporations ETF
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Bitwise Files Bitcoin Standard ETF Prospectus
Bitwise, one of the largest crypto and exchange-traded fund (ETF) managers in the U.S., is designing a tool to allow the public to invest in companies supporting bitcoin. The institution filed for the approval of an ETF tool to track the performance of companies holding bitcoin as part of their reserve holdings.
Nate Geraci, president of the ETF Store, an investment advising firm that focuses on ETFs, first broke the news on social media, stating that the BTC treasury operation virus was spreading due to the public companies’ growing adoption of the prime cryptocurrency.
The filed prospectus details that the Bitwise Bitcoin Standard Corporations ETF would invest in companies with at least 1,000 BTC in their corporate treasuries. If adopted, this could provide investors with exposure to these companies without owning each separate stock, simplifying their investment tasks. The fund would invest at least 80% of its net assets plus borrowings in the shares part of the index.
Geraci had predicted the partition of such an instrument, recognizing that there would be demand for this kind of fund. “Only a matter of time until there’s a filing for an ETF like this. Just need the universe of companies to expand,” Geraci assessed.
The number of companies the fund could invest in is limited as not many own over $1,000 BTC in their treasuries. The largest holder is Microstrategy, which has over 444,000 BTC. Behind it, several bitcoin miners like Marathon, Riot, and Hut 8 also fulfill the prospectus requirements. Tesla, Coinbase, Cleanspark, Block, Galaxy Digital, Boyaa, Bitcoin Group SE, Hive, Semler Scientific, Exodus, Metaplanet, Nexon, Bitfufu, and others complete the shortlist.
Bitwise is not the only company seeking approval for an investment offer of this kind. Recently, Vivek Ramaswamy’s Strive also filed a similar proposal, seeking to leverage bitcoin to hedge against the global fiat debt crisis, inflation, and geopolitical tensions.
Read more: Vivek Ramaswamy’s Strive Targets BTC Exposure With Bitcoin Bond ETF Proposal
