Bitwise Seeks ETF to Invest in Public Companies Adopting Bitcoin Standard
The post Bitwise Seeks ETF to Invest in Public Companies Adopting Bitcoin Standard appeared on BitcoinEthereumNews.com.
Bitwise has taken a significant step in the cryptocurrency investment sector by filing for an ETF that targets public companies holding substantial Bitcoin on their balance sheets. This innovative approach aims to capitalize on the growing trend of corporations adopting Bitcoin as part of their treasury management strategy, reflecting a shift in traditional investment norms. According to Nate Geraci, “the underlying thesis of this ETF is that companies holding Bitcoin may offer a unique investment opportunity,” highlighting the potential value of Bitcoin in corporate finance. Bitwise files for a Bitcoin-focused ETF targeting companies with significant holdings, poised to reshape crypto investment strategies amid increasing corporate adoption. Bitwise Bitcoin Standard Corporations ETF: A New Investment Paradigm The newly proposed Bitwise Bitcoin Standard Corporations ETF aims to revolutionize how investors engage with both traditional equities and cryptocurrencies. By exclusively targeting publicly traded companies that hold a minimum of 1,000 BTC in their treasuries, this ETF intends to establish a robust framework for investing in major market players who embrace Bitcoin. Companies included will not only need to meet the BTC threshold but also adhere to certain liquidity and market capitalization requirements, creating an efficient filtering mechanism. Criteria for Inclusion: Focus on Bitcoin-Centric Companies To qualify for this ETF, potential companies must demonstrate a market capitalization exceeding $100 million and maintain a daily liquidity of at least $1 million. This strategic requirement ensures that only firms with sufficient operational scale are included. Moreover, the ETF’s unconventional weighting method prioritizes the market value of Bitcoin holdings rather than the company’s overall market cap, giving a stronger voice to firms with substantial BTC reserves like MicroStrategy, which currently holds over 444,262 BTC. The Impact of Corporate Bitcoin Adoption on Stock Prices In recent months, public companies have increasingly gravitated toward Bitcoin as a mechanism to…
Filed under: News - @ December 27, 2024 3:05 am