Bitwise proposes ETF for companies holding over 1000 Bitcoin

Bitwise has submitted a proposal for a new exchange-traded fund (ETF) aimed at investing in publicly traded companies that maintain significant Bitcoin (CRYPTO:BTC) reserves. 

The proposed fund, named the Bitwise Bitcoin Standard Corporations ETF, would focus on companies that hold at least 1,000 Bitcoin in their corporate treasuries. 

According to a regulatory filing dated December 26, these companies must also meet specific criteria, including a market capitalisation of at least $100 million and an average daily liquidity of no less than $1 million.

Additionally, the ETF will only include firms with a public free float of under 10%. 

Unlike traditional ETFs that weight holdings based on market capitalisation, Bitwise's fund will allocate weight based on the market value of the companies' Bitcoin holdings, with a maximum weight of 25% for any single holding.

For example, Tesla, which has a market cap of $1.42 trillion and holds 9,720 BTC, would have less weight in the ETF compared to MicroStrategy, which has a market cap of $83.5 billion and holds 444,262 BTC.

This proposal comes during a period when many public companies are acquiring Bitcoin to enhance their stock valuations. 

Bitcoin has appreciated by 117% this year and recently peaked at around $108,000 before dropping to approximately $95,800.

KULR Technology Group recently joined the ranks of public firms purchasing Bitcoin, spending $21 million to acquire 217.18 BTC on December 16. 

This acquisition led to a significant increase in its stock price, which rose over 40% to an all-time high of $4.80.

Bitwise's ETF filing coincides with another recent proposal from Strive, founded by Vivek Ramaswamy, which aims to launch an ETF focused on "Bitcoin Bonds," investing in convertible bonds issued by corporate Bitcoin holders like MicroStrategy. 

As interest in Bitcoin continues to grow among institutional investors, Bitwise's initiative reflects the increasing integration of cryptocurrency into traditional financial markets.

At the time of reporting, the Bitcoin price was $95,364.58.