Bitwise has proposed a new exchange-traded fund (ETF) which focuses on companies that own large amounts of Bitcoin
btc
$96,517.73
According to the proposal presented on December 26, the Bitwise Bitcoin Standard Corporations ETF Would Include Companies With At Least 1,000 Bitcoin in Their Treasury.
The announcement comes as Public companies are increasingly adding Bitcoin to their treasuriesoften to attract investors. This year alone, Bitcoin has gained over 100% in value, further increasing its appeal.
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What sets this ETF apart is how you assign weight to companies. Instead of focusing on the size of its market, the fund Rank companies based on the value of their Bitcoin holdings. No company could represent more than 25% of the fund’s value, ensuring diversification.
For example, MicroStrategy, which owns more than 444,000 Bitcoin, They have more weight in the ETF than Tesla, which has less than 10,000 Bitcoin despite being a much larger company overall.
Under the Bitwise structure, MicroStrategy would have a larger stake in the ETF due to their large Bitcoin holdings.
To qualify, these Bitcoin holding companies must also have a market value of at least $100 million, an average daily trading volume of more than $1 million, and less than 10% of its shares available for public trading.
Bitwise’s filing coincided with another ETF proposal from Strive Asset Management, a company founded by Vivek Ramaswamy. Recently, the company filed for approval of its Bitcoin bond ETF. What makes the Strive Bitcoin Bond ETF stand out? Read the full story.
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