Bitwise has proposed a new exchange-traded fund that invests in publicly traded companies that hold more than 1,000 BTC in their corporate bonds.
In a regulation dated December 26 submitBitwise said the Bitcoin Standard Corporations ETF will invest in shares of publicly traded companies that have adopted the “Bitcoin Standard” by holding at least 1,000 Bitcoin (BTC) in their corporate bonds.
These securities include “common shares, depository receipts (both American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”)), tracking shares and other equity units. Such securities may be issued by U.S. and non-U.S. companies, including companies active in emerging countries,” the filing said.
To qualify for inclusion, companies must have a market capitalization of at least $100 million, average daily liquidity of at least $1 million and a public free float of less than 10%. These criteria will be assessed 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 holdings rather than the overall market capitalization, which is typically the case with traditional stock ETFs.
For example, Marathon Digital Holdings, with over 44,000 BTC in its reserves, will have a higher weighting in the ETF than Tesla, which owns 9,720 BTC, despite its significantly larger market cap of $1.42 trillion compared to Marathon’s $6.55 billion.
However, no stock will exceed a 25% weighting in the fund to ensure diversification and avoid overexposure to a single company.
Commenting on the filing, Nate Geraci, president of the ETF Store, said the ETF could see many companies competing for a spot in the index.
Fueled by Bitcoin’s performance this year, a wave of Wall Street-focused investment products has emerged, catering to the growing interest of institutional investors seeking exposure to Bitcoin and other cryptocurrencies through regulated and trusted financial instruments.
For example, Bitwise has proposed a Bitcoin-Ethereum mixed crypto ETF to US regulators. According to the Nov. 26 S-1 filing 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 market cap.
On December 21, New York-based GraniteShares filed for a series of leveraged ETFs aimed at tracking prominent companies with significant cryptocurrency exposure, including Riot Platforms, Marathon Digital, MicroStrategy and Robinhood.
Meanwhile, Grayscale Investments filed earlier this month to convert its Solana Trust (GSOL) into an exchange-traded fund.
