Bitwise Introduces ETF for Bitcoin-Focused Companies

• Bitwise launches an ETF tracking companies with at least 1,000 Bitcoin and strict liquidity and market cap criteria.
• European investors gain access to innovative Solana Staking ETP amid U.S. regulatory challenges.

Bitwise Asset Management has made waves once more with its latest venture, the “Bitcoin Standard Company ETF,” which intends to capitalize on the growing trend of organizations having Bitcoin in their financial reserves, according to the president of ETF Store, Nate Geraci.

Reflecting their great dedication to Bitcoin, this ETF is made to follow companies that meet specific criteria. Unlike other ETFs that might include corporations with little or indirect exposure to Bitcoin, this ETF gives enterprises with significant reserves top priority, therefore defining a clear criteria for participation.

Bitwise files for Bitcoin Standard Corporations ETF…

Would own stocks of companies that have adopted the “bitcoin standard”, which they define as holding at least 1,000 btc in corporate treasury.

The btc treasury operations virus is spreading. pic.twitter.com/me0XXX9a6g

— Nate Geraci (@NateGeraci) December 26, 2024

Strict Inclusion Standards Reflect Commitment to Bitcoin Stability 

Companies must own at least 1,000 BTC, have a market capitalization of no less than $100 million, have an average daily liquidity of at least $1 million, and have a public free float of 10% or more in order to be included.

These rigorous standards seek to guarantee that the ETF reflects just large players with clear dedication and stability.

Moreover, the fund’s allocation plan requires that 80% of its assets be linked to shares making up the index. Given their large Bitcoin holdings, companies like MicroStrategy, Tesla, and Coinbase are expected to be rather visible. For example, MicroStrategy leads the way with about 444,262 Bitcoins.

The fund’s weighting system reflects each company’s relative impact in the Bitcoin ecosystem and caps individual stock exposure at 25%, therefore guaranteeing a balanced payout.

This approach emphasizes the ETF’s two functions: it offers investors diverse exposure and stresses the importance of companies with Bitcoin-oriented emphasis. Rivals in the ETF market are also launching creative ideas concurrently.

Targeting convertible securities funding Bitcoin purchases, Strive Asset Management, for instance, has applied for a Bitcoin Bond ETF.

Apart from this, Bitwise keeps innovating outside of the US. Previously, CNF reported that the company has launched a Solana Staking ETP in Europe to appeal to investors looking for more profits by staking possibilities. Although U.S. regulations still provide difficulties, European investors are gaining from a larger range of financial products based on cryptocurrency.