Two New Crypto Exchange-Traded Funds (ETFs) Launched for Diversified Investment Opportunities

New Crypto ETFs Offer Investors a Unique Opportunity

The cryptocurrency market is witnessing significant developments as two new exchange-traded funds (ETFs) were recently launched by Bitwise and Strive. These ETFs, known as the Bitwise Bitcoin Standard Corporations ETF and Strive’s Bitcoin ETF, are specifically designed to target firms that have substantial holdings of Bitcoin in their treasuries.

According to reports, Bitwise has filed for an ETF that aims to track companies with a minimum holding of 1,000 Bitcoins. The fund will assign weights to these companies based on the market value of their Bitcoin reserves rather than traditional methods like market capitalization. This means that even if a company has a lower market cap but holds a significantly larger amount of Bitcoin, it can still have a higher weighting in the portfolio.

For instance, Tesla would have a lower weighting due to its much smaller Bitcoin holdings compared to companies like MicroStrategy, which has accumulated over 444,262 BTC. It is interesting to note that this methodology allows for a more nuanced approach to investing in the cryptocurrency space.

On the other hand, Strive’s ETF will focus on convertible bonds with firms that have adopted Bitcoin as part of their corporate strategy. This actively managed fund will offer investors an opportunity to gain exposure to Bitcoin without directly buying and holding the digital currency.

The recent surge in Bitcoin prices has fueled interest in cryptocurrencies, and it is expected that more crypto ETFs will be approved in 2025 under President-elect Donald Trump’s administration.

Source: cryptotale.org