Bitwise and Strive Submit Filings for New Bitcoin-Focused ETFs
Two new exchange-traded funds (ETFs) are being proposed by Bitwise and Strive, inspired by the trend of companies adopting Bitcoin as part of their treasury strategies. Recent filings with the US Securities and Exchange Commission (SEC) detail these unique funds focused on Bitcoin.
Bitwise and Strive File for Unique Bitcoin-Focused Funds
Bitwise, known for managing various crypto ETFs, plans to launch the “Bitcoin Standard Corporations ETF.” This fund will invest in companies holding over 1,000 BTC that meet specific size and liquidity criteria. To qualify, companies must have a market capitalization exceeding $100 million, an average daily liquidity over $1 million, and a public free float below 10%.
A distinctive feature of Bitwise’s ETF is its weighting system, which allocates investments based on the value of Bitcoin held by each company rather than their market capitalization. Consequently, smaller firms with substantial Bitcoin holdings will have a larger weight in the fund compared to larger firms with minimal holdings.
Strive is proposing a different model with its “Bitcoin Bond ETF.” Founded by Vivek Ramaswamy, this fund intends to invest in convertible securities from companies like MicroStrategy, which utilize proceeds to purchase Bitcoin. This approach contrasts sharply with Bitwise’s focus on direct Bitcoin holdings.
Bitcoin Treasury Adoption Spreads
The trend of corporate Bitcoin adoption continues to grow. Recently, KULR Technology Group acquired $21 million worth of Bitcoin and plans to allocate up to 90% of its spare cash to the cryptocurrency. While KULR does not yet qualify for Bitwise’s ETF, other firms like Tesla and Semler Scientific already do.
Nate Geraci, President of ETF Store, noted on X: “The Bitcoin treasury operations virus is spreading.” The emergence of these ETFs indicates increasing institutional demand for innovative investment avenues in the Bitcoin space.