Bitwise has proposed a new exchange-traded fund that invests in listed companies that hold over 1000 BTC in their corporate treasuries.
In a Dec. 26 regulatory filing, Bitwise said the Bitcoin Standard Corporations ETF will invest in equity securities of publicly traded companies that have adopted the “Bitcoin Standard” by holding at least 1,000 Bitcoin (BTC) in their corporate coffers.
These securities include “common stocks, depositary receipts (both American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”)), tracking stocks and other equity interests. Such securities may be issued by U.S. and non-U.S. companies, including companies “We operate in emerging markets,” the filing states.
To qualify for inclusion, companies must have a market capitalization of at least $100 million, average daily liquidity of at least $1 million, and a public float of less than 10%. These criteria are assessed using quarterly and annual company reports.
When weighting, the ETF prioritizes the market value of each company’s Bitcoin holdings rather than its total market capitalization, which is typically the case with traditional stock ETFs.
For example, Marathon Digital Holdings, with over 44,000 BTC in its reserves, will have a higher weighting in the ETF than Tesla, which holds 9,720 BTC, despite its significantly larger market cap of $1.42 trillion compared to Marathon’s $6.55 billion .
However, no stock in the fund will have a weighting of more than 25% to ensure diversification and avoid overweighting any one company.
Comment on…
