Asset management firm Bitwise has launched a new product to deepen its foothold in the Bitcoin ecosystem
Bitwise has plans to launch a Bitcoin Standard company Exchange Traded Fund (ETF) which has BTC as part of their corporate financial reserve. The leading crypto asset manager hopes to index top public-listed firms such as Marathon Digital, MicroStrategy, Metaplanet, Semler Scientific, Marathon Digital, Coinbase among others.
Bitwise’s Stringent Criteria for Inclusion
Bitwise’s minimum standards for the new Bitcoin ETF has been set at 1,000+ BTC holdings and above. As per the update, Bitwise Asset Manager will track notable companies that adopt the Bitcoin standard through its treasury holdings. Bitwise will commit a minimum of 80% of its assets as funds in securities that comprise the index.
Some big names anticipated to pioneer the venture include Tesla (TSLA), MicroStrategy (MSTR), Coinbase (COIN), and Semler Scientific (SMLR). It will also include Marathon Digital (MARA), Metaplanet (MTPLF) and other entities. In order to get an inclusion right in the index, Bitwise set some guidelines as requirements.
The participating companies must hold 1,000 BTC minimum as part of their corporate treasury. Their market capitalization must be in excess of $100 million with a minimum average daily liquidity of $1 million. Additionally, such a company must maintain a public-free float of at least 10%.
So far, some industry leaders have expressed enthusiasm of belonging to the new investment fund by Bitwise. Simon Gerovich, CEO of Metaplanet noted that his company has at least 1,000 BTC in its corporate treasury and therefore qualifies. Similarly, Fred Thiel, Marathon Digital CEO says with over 44,000 BTC in its treasury, MARA has to make the index.
This move by Bitwise might mark a shift in the asset ownership by public companies. Eric Semler emphasized this point when he stated that in the near future, companies without Bitcoin on their balance sheet might come off as “irresponsible.”
Growing Corporate Interest in Bitcoin
Interestingly, more institutional players have leaned towards Bitcoin as a hedge and these could well get in on Bitwise’s index.
Metaplanet, for instance, quickly embraced the Bitcoin accumulation strategy of MicroStrategy and has steadily increased its Bitcoin holdings. Metaplanet recently issued $11.3 million bond to expand its Bitcoin bag. The Japanese investment firm says the bond will mature in November of 2025.
In a similar move, Bitcoin mining company MARA Holdings shored up its assets with $1.53 billion debt capital. The acquisition makes the miner the publicly traded company with the largest amount of Bitcoin reserve.
These developments highlight that Bitcoin as a corporate reserve is gaining traction and could signal corporations’ future. This could fuel increased demand for Bitcoin going into 2025. How this pans out, time will reveal.
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