Bitwise Proposes New ETF to Invest in Companies Holding Over 1,000 BTC

Bitwise has submitted a regulatory filing for a new exchange-traded fund (ETF) focused on investing in publicly traded companies with significant Bitcoin holdings. The Bitcoin Standard Corporations ETF aims to provide investors with exposure to companies that have adopted the “Bitcoin standard” by holding at least 1,000 Bitcoin (BTC) in their corporate treasuries.

Investment Criteria and Weighting

The ETF will invest in a variety of equity securities, including common stock, depositary receipts, tracking stocks, and other equity units. To qualify for inclusion, companies must meet specific criteria, such as having a market capitalization of at least $100 million, average daily liquidity of $1 million, and a public free float of under 10%. These criteria will be assessed based on quarterly and annual corporate reports.

The ETF’s weighting will prioritize the market value of each company’s Bitcoin holdings rather than its overall market capitalization. For example, Marathon Digital Holdings, with over 44,000 BTC in its reserves, will have a higher weighting in the ETF than Tesla, which holds 9,720 BTC, despite its significantly larger market capitalization.

However, no stock will exceed a weighting of 25% in the fund to ensure diversification and prevent overexposure to any single company.

Market Expert Insights

“The ETF could see many companies vying for a spot in the index.” – Nate Geraci, President of the ETF Store

This new ETF proposal is part of a growing trend of investment products catering to institutional investors seeking exposure to Bitcoin and other cryptocurrencies through regulated financial vehicles.

Other Recent ETF Proposals

Bitwise has also proposed a Bitcoin-Ethereum mixed crypto ETF, aiming to provide balanced exposure between the two largest cryptocurrencies by market cap. Additionally, GraniteShares has filed for a set of leveraged ETFs tracking prominent companies with significant crypto exposure, including Riot Platforms, Marathon Digital, MicroStrategy, and Robinhood. Grayscale Investments has also filed to convert its Solana Trust (GSOL) into an exchange-traded fund.

Tips for Investors

* Consider investing in ETFs that provide diversified exposure to the cryptocurrency market.
* Keep an eye on regulatory filings and proposals for new investment products.
* Research and understand the investment criteria and weighting of any ETF before investing.
* Diversify your portfolio to minimize risk and maximize returns.

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