By Key Points
- Bitwise files for a Bitcoin Treasury ETF tracking 1,000+ BTC firms.
- ETF focuses on Bitcoin reserves, not market cap.
- Public firms hold 587.6k BTC, second only to ETFs globally.
- Companies like Marathon Digital (44,000 BTC) dominate allocations.
Bitwise Asset Management is taking the crypto industry by storm with its recent filing for a Bitcoin Treasury ETF. This exchange-traded fund will track publicly traded companies holding significant Bitcoin reserves—specifically those with over 1,000 BTC in their treasuries.
The ETF, filed with the U.S. Securities and Exchange Commission (SEC), highlights Bitcoin’s increasing importance as a corporate treasury asset.
Unlike conventional ETFs that prioritize market cap, this fund bases its weightings on Bitcoin holdings, aligning with Bitcoin’s growing role in institutional finance.
BREAKING: 🇺🇸 Bitwise has filed for a Bitcoin Standard Corp ETF with the SEC 🎉
The fund will offer exposure to companies that have adopted a #Bitcoin standard and hold at least 1,000 $BTC in their corporate treasuries. pic.twitter.com/LIv2nn0TyC
— Swan (@Swan) December 27, 2024
Weighted by Bitcoin, Built for Diversification
The Bitcoin Treasury ETF offers a unique weighting system focused entirely on the value of Bitcoin reserves. Marathon Digital Holdings, which owns over 44,000 BTC, will have a larger ETF weight than Tesla, despite Tesla’s higher market cap but smaller Bitcoin holdings of 9,720 BTC.
To maintain balance, Bitwise caps the ETF weighting for any company at 25%. Any excess weight is reallocated to other components to ensure diversification.
According to Bitwise’s SEC filing:
“The ETF weights securities based on Bitcoin holdings, ensuring diversification by capping individual weights and redistributing excess weight equally.”
This innovative structure allows investors to gain exposure to companies leading the Bitcoin adoption wave while reducing risk through diversification.
Public Companies Leading Bitcoin Treasuries
The ETF filing comes as more public companies are adopting Bitcoin as a strategic treasury asset. High-profile firms like MicroStrategy and Marathon Digital have paved the way for broader adoption, inspiring businesses across industries to follow suit.
- Recent adopters include: Acquired 217.18 BTC worth $21 million.
- Nano Labs: A tech company incorporating Bitcoin into its strategy.
- Rumble: A social media platform making waves in the crypto space.
According to Bitcoin Treasuries data, public companies collectively hold 587,600 BTC, making them the second-largest holders after ETFs, which hold nearly 1.3 million BTC. MicroStrategy alone accounts for a staggering 444,262 BTC, underscoring its leadership in corporate Bitcoin adoption.
Governments and private companies also contribute to Bitcoin’s global adoption, holding 513,000 BTC and 408,000 BTC, respectively.
Why This ETF Matters
As corporate Bitcoin adoption accelerates, the Bitcoin Treasury ETF provides investors with a diversified, structured way to participate in the trend.
By focusing on companies with substantial Bitcoin holdings, Bitwise is giving investors direct exposure to the increasing integration of Bitcoin into the corporate world.
This ETF could mark a turning point, bridging the gap between traditional finance and crypto, and positioning Bitcoin as a cornerstone of global corporate strategy.
