Key Takeaways
Bitwise Asset Management has submitted a proposal to the SEC to launch the Bitcoin Standard Corporations ETF. This ETF will include public companies that hold at least 1,000 Bitcoin in their corporate treasuries. The selection of companies will be based on specific criteria, such as a minimum market capitalization of $100 million, daily liquidity of at least $1 million, and a public float below 10%.
Unlike traditional ETFs that weight portfolio holdings based on market capitalization, this ETF will weight holdings based on the companies’ Bitcoin holdings. However, there will be a 25% cap on individual constituents. For example, MicroStrategy, which holds 444,262 Bitcoin, will have a larger allocation than Tesla, despite Tesla having a higher market cap.
This filing comes at a time when the price of Bitcoin has risen by 117% this year. Corporate interest in Bitcoin is growing, as demonstrated by KULR Technology Group’s recent $21 million Bitcoin purchase, which boosted its stock price by over 40%.
The ETF will be classified as non-diversified under the Investment Company Act of 1940, meaning it may concentrate its investments in fewer companies compared to diversified funds. The fund will trade on NYSE Arca, pending SEC approval. This filing follows a similar submission by Strive for an ETF focused on convertible bonds of Bitcoin-heavy firms.
This new filing complements Bitwise’s existing BTC ETF, which currently holds net assets of approximately $3.9 billion, with shares trading around $51.86, according to Bitwise data.