Bitwise files an ETF for companies that have more than 1,000 BTC

Key Takeaways

The Bitwise ETF includes companies with more than 1,000 BTC, weighted according to the size of the Bitcoin treasury rather than market capitalization.
The ETF proposal reflects an increase in physical adoption of Bitcoin amid its strong price performance this year.

Bitwise Asset Management filed with the SEC to launch the Bitcoin Standard Corporations ETF, targeting public companies that have at least 1,000 Bitcoins in their corporate treasury.

According to the to filethe fund focuses on the equity securities of companies that meet certain criteria, including a minimum market capitalization of $100 million, daily liquidity of at least $1 million, and a public float under 10%.

The proposed ETF emphasizes portfolio investments based on companies' Bitcoin holdings rather than market capitalization, with a 25% cap on individual constituents.

For example, MicroStrategy, holding 444,262 Bitcoin, would have a larger allocation than Tesla, despite Tesla's higher market cap.

The filing comes as Bitcoin has gained 117% this year, topping $108,000 shortly before settling near $95,500 at press time.

Corporate interest in Bitcoin has increased, as seen by KULR Technology Group recently Bitcoin purchase $21 millionwhich boosted its stock price by over 40%.

The ETF will be classified as non-diversified under the Investment Company Act of 1940, which may concentrate investments in fewer companies than a diversified fund.

Seasonal rebalancing will keep the index aligned based on market conditions and changes in Bitcoin holdings of constituent companies.

The fund will trade on NYSE Arca, pending SEC approval. This filing follows a similar pattern apply with Strive for an ETF focused on convertible bonds of Bitcoin-heavy companies.

This new filing adds to the existing Bitwise BTC ETF, which currently has net assets of about $3.9 billion, with shares trading around $51.86, according to Bitwise data.