Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) to introduce the “Bitcoin Standard Corporation ETF,” an exchange-traded fund designed to invest in publicly traded companies holding substantial Bitcoin reserves.
Bitwise’s Investment Criteria and Structure
To qualify for inclusion in the ETF, companies must meet specific criteria, which includes:
- The company should hold a a minimum of 1,000 BTC in corporate treasury.
- The market capitalization of the company has to be at least $100 million.
- The company must maintain a daily trading liquidity of about $1 million or more.
- The company must have less than 10% of their stock privately held.
The ETF will allocate its investments based on how much Bitcoin each company owns with no single company making up more than 25% of the fund.
Notable Companies in ETF
Notable companies that meet the inclusion criteria include MicroStrategy, which holds approximately 444,262 BTC, and Tesla, which holds around 9,720 BTC indicating significant corporate adoption of Bitcoin as a treasury asset.
Market Context an Investor Interest
The launch of this ETF comes at a time when more and more big investors are attracted towards Bitcoin. This year Bitcoin’s price has more than doubled, partly because of new investment products such as these ETFs. In fact, investors have put around $29 billion into Bitcoin ETFs since they were approved earlier this year.
Regulatory Considerations
Bitwise’s ETF application is happening at a time when regulators are becoming more open to cryptocurrency-related investments. The SEC has recently approved several Bitcoin ETFs, which shows that they are getting used to the idea of digital assets in traditional finance.
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