Digital asset management firm Bitwise has filed a registration with the SEC for a Bitcoin-centric ETF. The “Bitwise Bitcoin Standard ETF” aims to invest in companies with significant Bitcoin (BTC) assets or BTC-related revenues, aiming to mitigate custody, regulatory, and liquidity concerns. Companies must hold at least 1,000 BTC and maintain a $100 million market capitalization to qualify. The ETF’s weighting is focused on each company’s Bitcoin reserves, capping each constituent at 25% to avoid excessive concentration. The proposed fund intends to invest 80% of its net assets in such companies.
The Defi Comment:
Bitwise, a top digital asset management company, has filed a registration statement with the US SEC for the “Bitwise Bitcoin Standard ETF.” The proposed fund will target substantial investment in publicly-traded businesses with sizable Bitcoin (BTC) reserves or BTC-related revenue. The eligibility criteria require companies to hold a minimum of 1,000 BTC, with a market cap of $100 million, and daily trading liquidity above $1 million. One unique aspect of the filing is Bitwise’s departure from traditional market-cap weighting, favoring instead a weighting approach based on a company’s market value of BTC holdings. Despite smaller market capitalization, firms like MicroStrategy could have a higher weighting due to their large Bitcoin treasury. The scheme was welcomed by the community, with Nate Geraci of The ETF Institute remarking, “The btc treasury operations virus is spreading.”
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