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Bitwise Files for Bitcoin Reserve ETF Tracking Firms With BTC Holdings
In a significant move, digital asset investment company Bitwise has filed with the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin Reserve ETF tracking firms that hold bitcoin (BTC) on their balance sheets.
As reported, the proposed exchange-traded fund (ETF) aims to provide investors with indirect exposure to bitcoin reserves without requiring direct cryptocurrency ownership. This new development is seen as a groundbreaking step in the integration of cryptocurrencies into traditional markets.
The Bitwise Bitcoin Reserve ETF will track companies that have adopted the “bitcoin standard,” which refers to holding at least 1,000 BTC in their corporate treasuries. Furthermore, eligible firms must meet specific criteria such as a market capitalization of $100 million or more and an average daily liquidity of $1 million. Additionally, the publicly traded company’s free float must be below 10%.
Unlike traditional ETFs that are weighted by market capitalization, Bitwise’s fund will base weightings on the market value of firms’ bitcoin holdings, capped at 25% to manage risk and ensure diversification.
This move reflects growing institutional interest in bitcoin as a reserve asset amid inflation concerns. It also highlights the increasing demand for crypto-backed funds that offer investors exposure without requiring direct cryptocurrency ownership.
By capturing returns tied to companies prioritizing bitcoin adoption, Bitwise’s ETF provides an innovative way for investors to participate in the growth of the digital assets market.
Source: http://www.crypto-news.net
