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Bitwise Proposes New ETF to Invest in Firms Holding 1,000 BTC or More
In a groundbreaking move, cryptocurrency investment company Bitwise has proposed the creation of a new exchange-traded fund (ETF) that will exclusively invest in publicly traded companies holding at least 1,000 Bitcoin (BTC) in their corporate treasuries. This innovative ETF, dubbed the Bitcoin Standard Corporations ETF, aims to capture the growing trend of institutional adoption and diversification.
To qualify for inclusion in this ETF, companies must meet a range of criteria, including maintaining a minimum of 1,000 BTC in their treasury, as well as satisfying specific market requirements. The proposal highlights the increasing interest in Bitcoin investment products, fueled by the cryptocurrency’s remarkable price growth over the past year – up a staggering 126%.
The proposed ETF will assign weights to constituent firms based on the market value of each company’s Bitcoin holdings, capping individual exposure at 25% to ensure diversified exposure. This unique approach is expected to provide investors with a high-risk yet potentially lucrative investment opportunity.
Bitwise CEO Hunter Horsley has expressed optimism regarding the potential for widespread corporate adoption in 2025, stating that “it feels like 2025 will be a big year for new corporates adopting the Bitcoin Standard.”
Notably, numerous companies have already demonstrated their commitment to Bitcoin by buying and holding significant amounts of BTC. MicroStrategy, a leading software company, has amassed an enormous stash of over 44,400 BTC, while mining firms such as Marathon Digital, Riot, Tesla, and Hut 8 also meet the proposed ETF’s eligibility criteria.
The proposal comes amid escalating corporate adoption of Bitcoin, with KULR Technology Group recently announcing its entry into the Bitcoin market by purchasing 217.18 BTC for approximately $21 million. The company plans to further diversify its treasury through future purchases, potentially investing up to 90% of its surplus cash in the cryptocurrency.
This development follows the strategic move made by Matador Technologies, which will be acquiring $4.5 million worth of Bitcoin and USD-denominated assets to mitigate risks associated with the Canadian dollar’s potential devaluation.
The creation of this ETF would provide investors with a new avenue for gaining exposure to companies that have already demonstrated their conviction in the cryptocurrency market.
Source: cryptopotato.com
