News 
December 27, 2024 
3 min. 
Bitwise Asset Management is taking a bold step into the Bitcoin space by filing for a new Exchange-Traded Fund (ETF). The proposed ETF, named the Bitwise Bitcoin Standard Corporations ETF, aims to track companies that hold significant Bitcoin reserves. This unique approach provides investors with a way to indirectly gain exposure to Bitcoin through firms embracing the “Bitcoin standard.”
How the Bitwise ETF Works
Unlike traditional ETFs, Bitwise’s fund prioritizes the value of Bitcoin holdings rather than a company’s market size. To qualify for inclusion, companies must meet stringent requirements: holding at least 1,000 BTC in reserves, maintaining a market capitalization of $100 million, daily liquidity of $1 million, and limiting private stock ownership to less than 10%.
MicroStrategy, a company that leads the corporate Bitcoin charge with 444,262 BTC in its reserves, would likely dominate the ETF. In contrast, Tesla, despite its larger market cap, holds only 9,720 BTC. To ensure balance, no single company will account for more than 25% of the ETF.
The Growing Appeal of Bitcoin for Corporations
Corporations are increasingly turning to Bitcoin, and the numbers tell the story. Companies like KULR Technology Group have seen significant benefits from investing in Bitcoin. KULR recently purchased 217.18 BTC for $21 million, a move that boosted its stock price by 40%.
Meanwhile, Bitcoin itself is having a record-breaking year, rising 117% to reach an all-time high of $108,000 in December. It is currently trading at around $95,800, underscoring its growing appeal among institutional and retail investors alike.
Bitwise’s proposal isn’t the only ETF on the horizon. Strive, another firm making waves, has filed for an ETF focused on Bitcoin bonds. As the competition heats up, these ETFs could offer exciting opportunities for investors to ride the wave of Bitcoin’s growing corporate adoption. However, as always in the crypto world, potential rewards come with inherent risks.
