Key Notes
- Bitwise’s ETF prioritizes Bitcoin value over market size.
- Strive’s fund targets companies heavily invested in Bitcoin bonds.
Two new exchange-traded funds (ETFs) may have just drawn inspiration from the growing trend that has seen companies adopting Bitcoin as part of their treasury strategies. According to recent filings with the US Securities and Exchange Commission (SEC), Bitwise and Strive, which are well-known asset managers, are looking to launch funds that will be focused on Bitcoin. The funds, however, will be different from others in the market as the proposals detail.
Bitwise and Strive File for Unique Bitcoin-Focused Funds
For what it might be worth, Bitwise already manages a range of popular crypto ETFs. However, its latest ambition is to launch what it dubs the “Bitcoin Standard Corporations ETF”.
This fund, per Bitwise’s proposal, would invest in companies that have embraced the “Bitcoin standard”. That is, companies that hold over 1,000 BTC and meet basic size and liquidity requirements.
For companies to qualify, they must have a market capitalization that exceeds $100 million, average daily liquidity of over $1 million, and a public free float lower than 10%.
Notably, though, there is an interesting aspect to Bitwise’s new ETF, which is its weighting system. So, instead of weighting investments by the companies’ market capitalization, this ETF will base allocations on the value of Bitcoin that each company holds.
This means that smaller firms with significant Bitcoin investments would have a larger weight in the fund than larger firms with not so many holdings.
Strive, on the other hand, is taking another unique approach with its “Bitcoin Bond ETF”. The Vivek Ramaswamy-founded firm aims to use its ETF to invest in convertible securities from companies like MicroStrategy, which use proceeds to purchase Bitcoin.
Essentially, this means that Strive’s ETF, which focuses heavily on specific assets or issuers, is in stark contrast with Bitwise’s approach.
MicroStrategy, a pioneer in corporate Bitcoin investments, is a primary example of a company Strive’s fund would target.
Bitcoin Treasury Adoption Spreads
The rise in corporate Bitcoin holdings shows no signs of slowing. Recently, KULR Technology Group made headlines by acquiring $21 million worth of Bitcoin, aiming to allocate up to 90% of its spare cash to the cryptocurrency. While KULR’s holdings are not yet enough to qualify for Bitwise’s ETF, other companies like Tesla and Semler Scientific already meet the criteria.
Nate Geraci, President of ETF Store, commented on X: “The Bitcoin treasury operations virus is spreading.”
As institutional adoption of Bitcoin continues, these ETFs reflect the growing demand for innovative ways to invest in this space.
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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
He’s a reader, a researcher, an astute speaker, and also a budding entrepreneur.
Away from crypto however, Mayowa’s fancied distractions include soccer or discussing world politics.
