{"id":25311,"date":"2024-12-27T08:20:18","date_gmt":"2024-12-27T08:20:18","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/?p=25311"},"modified":"2024-12-27T08:20:18","modified_gmt":"2024-12-27T08:20:18","slug":"bitwise-introduces-innovative-bitcoin-standard-etf-highlighting-leading-btc-heavy-corporations","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/bitwise-introduces-innovative-bitcoin-standard-etf-highlighting-leading-btc-heavy-corporations\/","title":{"rendered":"Bitwise Introduces Innovative Bitcoin Standard ETF Highlighting Leading BTC-Heavy Corporations"},"content":{"rendered":"\n

Bitwise, a prominent firm in digital asset management, has submitted a new registration statement to the US Securities and Exchange Commission (SEC) on December 26, 2024, aiming for approval for the \u201cBitwise Bitcoin Standard ETF.\u201d The submission<\/a> outlines a fund focused on investing in publicly listed companies that possess significant Bitcoin (BTC) holdings or derive notable revenue from Bitcoin-related operations.<\/p>\n

The document emphasizes that the advisory team believes investing in stocks of firms with substantial BTC assets can provide a way to engage with Bitcoin\u2019s performance while addressing issues such as custody risks, regulatory challenges, and liquidity limits.<\/p>\n

Focusing on Bitcoin-Heavy Enterprises<\/h2>\n

The proposal includes a stringent eligibility criterion. Companies must possess a minimum of 1,000 BTC and have a market cap of at least $100 million. Additionally, daily liquidity must be above $1 million, and no more than 10% of the company\u2019s stock can be privately held.<\/p>\n

These requirements are put in place to ensure the ETF focuses on well-established companies that genuinely embrace Bitcoin in their operations and financial strategies. Bitwise emphasizes that this method safeguards investors from liquidity risks and governance challenges.<\/p>\n

A notable aspect of the filing is Bitwise\u2019s choice to move away from traditional market-cap weightings. Instead, the Bitcoin Standard ETF will weight companies based on the market value of their BTC holdings, capping contributions at 25% per firm.<\/p>\n

This system prioritizes the scale of a company\u2019s Bitcoin treasury over its total market size or revenue: \u201cThe Fund\u2019s weighting process will concentrate on the assessed market value of each company\u2019s Bitcoin reserves, with restrictions to prevent over-concentration.\u201d<\/p>\n

For example, MicroStrategy, a well-known business intelligence firm, currently holds around 444,262 BTC. Although its overall market capitalization is less than Tesla\u2019s, MicroStrategy\u2019s large Bitcoin reserves could result in a higher weighting compared to Tesla, which holds around 11,509 BTC.<\/p>\n

Furthermore, the filing states that the fund will allocate at least 80% of its net assets to equity securities of what Bitwise refers to as Bitcoin Standard companies, while also keeping the option to hold short-term instruments like cash for liquidity needs. \u201cNormally, the Fund plans to invest at least 80% of its net assets in stocks of firms that have significant Bitcoin holdings or generate substantial revenue from Bitcoin,\u201d the filing clarifies.<\/p>\n

The community response has been largely favorable. Nate Geraci, president of The ETF Institute, remarked on X: \u201cThe btc treasury operations virus is spreading.\u201d James McKay, founder of McKay Research, added: \u201cYou know the \u2018thing\u2019 is important when exposure to a thing that owns the thing is getting its own wrapper.\u201d<\/p>\n

On the same day that Bitwise filed its proposal, Vivek Ramaswamy\u2019s Strive Asset Management also introduced a competing Bitcoin ETF proposal, named the Strive Bitcoin Bond ETF, which aims to focus on convertible bonds from firms with considerable BTC holdings, such as MicroStrategy.<\/p>\n

As of now, BTC is trading at $94,857.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitwise, a prominent firm in digital asset management, has submitted a new registration statement to the US Securities and Exchange Commission (SEC) on December 26, 2024, aiming for approval for the \u201cBitwise Bitcoin Standard ETF.\u201d The submission outlines a fund focused on investing in publicly listed companies that possess significant Bitcoin (BTC) holdings or derive […]<\/p>\n","protected":false},"author":14,"featured_media":25312,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Bitwise Introduces Innovative Bitcoin Standard ETF Highlighting Leading BTC-Heavy Corporations - Bitrabo","description":"Bitwise, a prominent firm in digital asset management, has submitted a new registration statement to the US Securities and Exchange Commission (SEC) on December"},"footnotes":""},"categories":[316],"tags":[448,2929,10829,1951,1923,6256,2068,1488,889],"class_list":["post-25311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-bitcoin","tag-bitwise","tag-btcholding","tag-companies","tag-etf","tag-featuring","tag-files","tag-standard","tag-top"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/25311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=25311"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/25311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/25312"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=25311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=25311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=25311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}