TL;DR
- Bitwise launches the Bitcoin Standard Corporations ETF: It will invest in companies with at least 1,000 BTC in their reserves, weighting their participation based on the value of their holdings.
- Strive focuses on BTC-linked convertible securities: Its Bitcoin Bond ETF will concentrate on companies with significant investments in the cryptocurrency.
- Both funds aim to capitalize on institutional interest and integrate BTC as a pillar in corporate financial strategies.
Bitwise and Strive have announced initiatives aimed at opening new avenues in the Bitcoin exchange-traded fund (ETF) market. The plan is to integrate strategies focused on the corporate use of BTC. These proposals seek to capitalize on institutional interest in the cryptocurrency, creating new ways to leverage its potential in the financial sector.
Bitwise has filed a request with the United States Securities and Exchange Commission (SEC) to launch the Bitcoin Standard Corporations ETF, designed to invest in companies holding at least 1,000 Bitcoins in their reserves.
This ETF stands out due to a weighting methodology based on the value of Bitcoin held by each company, moving away from traditional criteria that use market capitalization as a reference. In this way, companies with larger BTC reserves will hold a more significant position in the fund, even if their overall market capitalization is lower than others.
Bitwise: New Approaches for the Institutionalization of Bitcoin
To be included in the ETF, companies must meet strict requirements, including a market capitalization exceeding $100 million, at least one million dollars in minimum daily liquidity, and less than 10% private ownership of their shares. With these criteria, Bitwise seeks to ensure the inclusion of companies with sufficient strength and transparency to attract institutional investors.
For its part, Strive, an asset management firm co-founded by Vivek Ramaswamy, has introduced the Strive Bitcoin Bond ETF, which will focus on convertible securities issued by companies with substantial Bitcoin investments. Unlike Bitwise’s ETF, this fund is “non-diversified,” allowing it to concentrate its portfolio on a limited number of companies, offering a more focused strategy on firms such as MicroStrategy, known for its massive BTC adoption.
Both Bitwise and Strive bring innovative approaches to fostering Bitcoin integration into corporate finance. The ETFs not only aim to provide exposure to cryptocurrency as an asset but also to demonstrate how it is incorporated into the operational and strategic framework of companies
