Bitwise files new ETF targeting firms with large Bitcoin holdings

• The Bitwise Bitcoin Standard Corporations ETF would invest in businesses that “hold at least 1,000 Bitcoin”
• Companies need to have a market capitalization of at least $100 million to be included in Bitwise’s proposed ETF
• KULR Technology Group started its Bitcoin Treasury strategy with the purchase of 217.18 Bitcoin for $21 million

Bitwise has filed a proposal with US regulators to launch a new exchange-traded fund (ETF) to invest in publicly traded companies that hold substantial Bitcoin reserves.

Under the Bitwise Bitcoin Standard Corporations ETF, the ETF issuer would invest in businesses that “hold at least 1,000 Bitcoin in its corporate treasury,” according to a December 26 filing with the US Securities and Exchange Commission (SEC).

To further qualify to be included in the ETF, companies need to have a market capitalization of at least $100 million, an average daily liquidity of $1 million or more, and a public free float of less than 10%.

The proposed ETF from Bitwise would assign stock weight based on the market value of a company’s Bitcoin holdings, ensuring this is capped at 25%.

Reaching new heights

The news comes as Bitcoin has experienced a rise in value following the US election win of President-elect Donald Trump. At its peak, Bitcoin reached a new all-time high above $107,000 earlier this month. In a client memo in November, Bitwise’s CIO Matt Hougan said the US election was either going to be a “speed bump” or a “wind gust” for the crypto market.

Significantly, in recent weeks, more companies have been buying Bitcoin to push up stock prices. On December 23, MicroStrategy announced on X that it now holds 444,262 Bitcoin after acquiring a further 5,262 Bitcoin for $561 million.

In other related news, KULR Technology Group announced on December 26 that it had started its Bitcoin Treasury strategy with the purchase of 217.18 Bitcoin for $21 million.

KULR Technology Group, Inc. ( $KULR ) begins its Bitcoin Treasury strategy with the purchase of 217.18 $BTC for $21M, averaging $96,556 per BTC.

Using $COIN ’s Prime platform for custody and wallets, KULR is allocating up to 90% of surplus cash to BTC.https://t.co/GClCvKTjUH pic.twitter.com/DFqAxDm0vS

— KULR Technology (@KULRTech) December 26, 2024