Bitwise launches ETF that tracks the stocks of corporate BTC holders

Bitwise has announced the launch of a new crypto product that will be based on the corporate stock of BTC holders. According to the company, the new fund will track the stock price of a basket of shares based on companies with the biggest BTC treasuries.

The companies that will be considered include mining entities with big reserves to other companies copying the model adopted by firms like Strategy. The minimal treasury will be 1,000 BTC, as Bitwise will categorize the firms under the ‘Bitcoin standards corporations.

Bitwise already offers eight ETFs based on tokens, baskets, and trends. This newest fund, known as the Bitwise Bitcoin Standard Corporations ETF, will choose from the top firms with Bitcoin treasuries. According to Bitwise, it is trying to move away from companies that have left holding corporate bonds as reserves. The fund was launched on March 10, with no assets presently under management since it launched. The fund is under the OWNB ticker and currently sells for $22.

Bitwise leans on Strategy to launch new ETF

The new ETF will lean heavily on companies that own BTC, with Microstrategy owning the biggest share with 20%. The other company holding a significant share is Mara Holdings with 12%, while the rest of the shares are split among other mining companies. Other notable companies include Metaplanet, Clean Spark, and Galaxy Digital.

The Bitwise OWNB ETF includes about 21 entities with their shares determined by how much Bitcoin they hold. Tesla is also included, with the firm owning about 1.27%. The company also added that they were looking into forward-thinking firms that value BTC. The new ETF stock selection has drawn criticism because some of these companies often sell some of their BTC to fund their operations.

According to Bitwise’s estimation, public companies hold 591,817 BTC. Other estimates are for a total of 3.09B, spread among 164 companies. The Bitwise estimation counts the more sizable BTC treasuries above 1,000 BTC, and the ETF is a narrower selection of that subset. BTC miners have suffered losses in their stocks over the last 30 days, showing the competitive nature of the industry. With difficulty increasing and Bitcoin’s price dropping, most of these miners are operating at a loss.

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