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Bitcoin Standard Corporations ETF Promoted By Bitwise With Unique Strategy

Key Points:

Bitwise has filed with the SEC for Bitcoin Standard Corporations ETF that invests in companies holding at least 1,000 Bitcoin.
Strive, co-founded by Vivek Ramaswamy, has also filed for a “non-diversified” ETF focused on convertible securities from companies.

Bitwise has filed a proposal with the United States Securities and Exchange Commission for the release of the Bitcoin Standard Corporations ETF.

Bitwise Files for Bitcoin Standard Corporations ETF

The fund will look to invest in those firms holding at least 1,000 Bitcoins in reserves and targeting those using the Bitcoin standard in operations. Eligibility also requires companies to have a market capitalization of more than 100 million dollars, 1 million dollars in minimum daily liquidity, and less than 10% private ownership of their shares.

The Bitwise Bitcoin Standard Corporations ETF has a different weighting methodology. Most ETFs use market capitalization to determine weightings, but this fund will weight companies based on the value of their Bitcoin.

This, however, indicates that companies with bigger reserves of Bitcoin will hold a much larger position in this ETF, notwithstanding companies with higher overall market valuation but with lesser amounts of Bitcoin.

New Bitcoin ETFs Reflect Growing Institutional Interest in Cryptocurrency

This is a more innovative departure from the current compositions of ETFs, as it focuses on what Bitcoin means to corporate strategy. The fund will give investors exposure to companies that are increasingly incorporating Bitcoin into their financial architectures- not just holding it in their balance sheet.

In addition to Bitwise’s filing, asset management firm Strive, co-founded by Vivek Ramaswamy, filed for the Strive Bitcoin Bond ETF. This product would hold convertible securities issued by companies like MicroStrategy that invest heavily in Bitcoin.

Unlike Bitwise’s ETF, this is a “non-diversified” offering, and as such, it’s able to invest more of its portfolio in specific companies without a fixed weighting scheme.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.