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coinpedia 2024-12-27 03:54:28

Bitwise Files for ETF Tracking Corporate Bitcoin Giants

The post Bitwise Files for ETF Tracking Corporate Bitcoin Giants appeared first on Coinpedia Fintech News Bitwise has filed for an Exchange-Traded Fund (ETF) that focuses on companies holding massive amounts of Bitcoin. The idea? To offer investors a way to gain exposure to firms embracing the “Bitcoin standard.” Curious what that means? Let’s break it down. A Closer Look at Bitwise’s Plan The proposed fund, called the Bitwise Bitcoin Standard Corporations ETF , is no ordinary ETF. To qualify for inclusion, companies must hold at least 1,000 Bitcoin in their reserves. That’s not all. They also need a market capitalization of at least $100 million, daily liquidity of $1 million, and less than 10% of their stock privately held. Source : SEC Edgar Here’s where it gets interesting: the ETF doesn’t weigh companies based on their market size, like most funds do. Instead, it focuses on the value of their Bitcoin holdings. MicroStrategy, which holds a whopping 444,262 BTC, would dominate the ETF, even though Tesla owns far fewer Bitcoin (9,720 BTC) but has a much larger market cap. Each holding, however, is capped at 25% to keep things balanced. Bitcoin’s Growing Corporate Appeal Why are companies diving into Bitcoin? Partly because it’s great for their stock prices. Take KULR Technology Group , for instance. They bought 217.18 BTC for $21 million earlier this month. That decision paid off big time, boosting their stock price by 40%. And let’s not forget Bitcoin itself. The cryptocurrency has soared 117% this year, hitting a record high of $108,000 in December. Even now, it’s holding steady at around $95,800. It’s clear that Bitcoin’s appeal is only growing. What to Expect Bitwise’s ETF isn’t the only one vying for attention. Strive, a firm founded by Vivek Ramaswamy, has filed for an ETF focused on Bitcoin bonds. It’ll be interesting to see how these competing proposals play out. For investors looking to bet on Bitcoin’s rising adoption, these ETFs could open exciting new doors. But as always with crypto, there’s a mix of potential and uncertainty.

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