Bitcoin-Linked Corporate Investment Opportunity Filed with U.S. Securities and Exchange Commission
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Bitwise Files for Bitcoin Standard Corporations ETF with the U.S. Securities and Exchange Commission
December 27, 2024 – In a significant development, 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.
The proposed ETF aims to track the performance of publicly listed corporations that meet specific criteria to ensure their commitment to Bitcoin ownership. To qualify for inclusion, companies must adhere to strict guidelines, which include:
* Holding a minimum of 1,000 BTC in corporate treasury
* Maintaining a market capitalization of at least $100 million
* Ensuring daily trading liquidity of about $1 million or more
* Keeping less than 10% of their stock privately held
These criteria are designed to filter out companies that do not demonstrate a genuine commitment to Bitcoin ownership, thus ensuring the ETF tracks only reputable and reliable corporate stakeholders.
The ETF’s investment structure is also noteworthy. It will allocate its investments based on the amount of Bitcoin each company holds, capping no single company at 25% of the fund. This approach ensures diversification while maintaining exposure to significant Bitcoin holders.
Notable companies that have already met these criteria include MicroStrategy and Tesla, which respectively hold approximately 444,262 BTC and 9,720 BTC in their treasuries. The inclusion of such notable companies underscores the growing trend of corporate adoption of Bitcoin as a treasury asset.
The market context for this ETF is particularly timely. This year has seen a significant surge in investor interest, driven largely by new investment products like ETFs. As a result, investors have poured approximately $29 billion into Bitcoin ETFs since their approval earlier in the year.
Moreover, regulators are increasingly warming up to cryptocurrency-related investments. The SEC’s recent approvals of multiple Bitcoin ETFs demonstrate its growing comfort with digital assets in traditional finance.
Source: www.cryptonewsz.com
