Bitwise Asset Management has submitted a filing to the SEC for the Bitcoin Standard Corporations ETF, which aims to invest in public companies that possess at least 1,000 Bitcoin in their treasuries.
The ETF will focus on equity securities of companies that meet specific criteria, including a minimum market capitalization of $100 million and daily liquidity of at least $1 million, while also maintaining a public float below 10%.
Unlike traditional ETFs that weight holdings based on market capitalization, this fund will allocate based on the amount of Bitcoin held by each company, imposing a 25% cap on individual holdings. For instance, MicroStrategy, with its substantial Bitcoin reserves, would receive a larger allocation compared to Tesla, despite Tesla’s greater market cap.
The filing comes amid a significant rise in Bitcoin’s value, which has increased by 117% this year, briefly exceeding $108,000. Corporate interest in Bitcoin is also on the rise, as evidenced by KULR Technology Group’s recent $21 million Bitcoin acquisition, which significantly boosted its stock price.
The ETF will be classified as non-diversified, potentially leading to a concentration in fewer companies compared to diversified funds. It will undergo quarterly rebalancing to align with market conditions and changes in the Bitcoin holdings of the constituent companies.
