Bitwise has proposed a new exchange fund that invests in publicly traded companies with more than 1000 BTC in their corporate treasuries.
In a regulation of December 26 filingBitwise said the Bitcoin Standard Corporations ETF invests in the equity securities of public companies that have adopted the “Bitcoin standard” by holding at least 1,000 Bitcoin (BTC) in their corporate treasuries.
These securities include “common stock, depositary receipts (both American Depositary Receipts (“ADR”) and Global Depositary Receipts (“GDR”), tracking shares and other equity units. Such securities can be issued by US and non-US companies including companies operating in emerging market countries,” the filing said.
To qualify for inclusion, companies must have at least $100 million in market capitalization, average daily liquidity of at least $1 million, and a public free float of less than 10%. These criteria will be evaluated based on the company’s quarterly and annual reports.
In terms of weighting, the ETF will prioritize the market value of each company’s Bitcoin shares rather than its overall market capitalization, which is typically the case with traditional equity ETFs.
For example, Marathon Digital Holdings, with more than 44,000 BTC in its reserves, will have a higher weighting in the Tesla ETF, which holds 9,720 BTC, despite its market capitalization of $1.42 trillion significantly larger compared to Marathon’s $6.55 billion.
However, no stock will exceed a 25% weighting in the fund to ensure diversification and prevent overexposure to any single company.
Commenting on the filing, Nate Geraci, president of the ETF Store, said that the ETF could see several companies fighting for a place in the index.
Fueled by Bitcoin’s performance this year, a wave of Wall Street-focused investment products has emerged, responding to growing appetite among institutional investors seeking exposure to Bitcoin and other cryptocurrencies through regulated financial vehicles and familiar.
Bitwise, for example, proposed a mixed Bitcoin-Ethereum crypto ETF to US regulators. According to the November 26 S-1 with the Securities and Exchange Commission, the ETF aims to provide balanced exposure between Bitcoin and Ethereum, offering investors a diversified approach to the two largest cryptocurrencies by capitalization of the market.
On December 21, New York-based GraniteShares archived for a set of leveraged ETFs aimed at tracking prominent companies with significant crypto exposure, including Riot Platforms, Marathon Digital, MicroStrategy and Robinhood.
Meanwhile, at the beginning of the month, Investments in gray scale archived to convert his Solana Trust (GSOL) into an exchange-traded fund.
