Bitwise’s New Bitcoin ETF To Track Companies Like MicroStrategy, Metaplanet

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As a seasoned analyst with over two decades of experience in the financial industry, I find the latest moves by Bitwise and other key players in the crypto space to be a game-changer. The proposed Bitcoin Standard Company ETF is an innovative approach that not only validates the growing acceptance of Bitcoin but also provides a unique investment opportunity for traditional investors seeking exposure to this burgeoning asset class.

Bitwise Asset Management, the leading crypto asset manager globally, is considering the debut of a Bitcoin Standard ETF. This Exchange-Traded Fund (ETF) will include Bitcoin as part of the financial reserves for major publicly traded companies such as MicroStrategy, Marathon Digital, Coinbase, Semler Scientific, Metaplanet, and others within its index. For this Bitcoin ETF, Bitwise has established certain prerequisites, including a minimum holding of 1,000 Bitcoin or more.

Here’s What Bitwise Bitcoin Standard Company ETF Will Offer

Bitwise Asset Management has unveiled a fresh Bitcoin ETF investment fund dedicated to businesses embracing Bitcoin through their corporate treasuries. According to their application document, this fund intends to allocate at least 80% of its holdings into securities that represent the index.

The index will feature prominent Bitcoin-related companies such as MicroStrategy (MSTR), Marathon Digital (MARA), Coinbase (COIN), Tesla (TSLA), Semler Scientific (SMLR), Metaplanet (MTPLF) among others. To be included, however, these companies must meet certain essential requirements.

  • Hold a minimum of 1,000 Bitcoins in their corporate treasury.
  • Maintain a market capitalization of at least $100 million.
  • Have a minimum average daily liquidity of $1 million.
  • Maintain a public-free float of at least 10%.

The following are potential members of the upcoming Bitcoin Standard Company Exchange-Traded Fund proposed by Bitwise.

Key figures within the industry are expressing enthusiasm about joining Bitwise’s latest investment fund. Fred Thiel, CEO of Marathon Digital, expressed that due to their holding of more than 44,000 Bitcoins in their reserves, it would likely be essential for MARA to participate. Similarly, Simon Gerovich, CEO of Metaplanet, stated that his company meets the criteria for the new Bitcoin ETF since it maintains over 1000 Bitcoins within its corporate treasury.

Conversely, the CEO of Semler Scientific, Eric Semler, has forecasted that in the imminent future, it could be deemed UNACCEPTABLE for public companies not to have Bitcoin listed among their assets.

MicroStrategy Also Part of Bitcoin Bonds ETF

In a fresh turn of events, Vivek Ramaswamy’s investment firm, Strive Asset Management, has submitted an application for a Bitcoin Bond Exchange-Traded Fund (ETF) to the U.S. Securities and Exchange Commission (SEC). The purpose of this ETF is to offer investors access to “Bitcoin Bonds,” which are essentially convertible securities issued by entities like MicroStrategy or other companies planning to use the funds raised to purchase Bitcoin, as outlined in the SEC filing. This move, following recent developments from Bitwise, has added to the growing excitement within the market.

Regarding the progress of Strive Asset Management, as per Eric Balchunas, a senior ETF analyst at Bloomberg, here’s his take:

Vivek’s ETF business has applied for a Bitcoin Bond ETF. This ETF will follow the path of convertible bonds that are specifically issued to acquire Bitcoin, in essence functioning like a Microstrategy convertible bond ETF until other companies introduce similar products.

For the past four years, MicroStrategy has gathered funds by selling stocks and convertible bonds. This week, Michael Saylor from MicroStrategy requested a special shareholders meeting to vote on their 21/21 plan. This plan aims to acquire $21 billion more through stock sales over the next three years, as well as an additional $21 billion via bond issuance. The goal is to increase its Bitcoin holdings further.

Based on the robust market interest in Bitcoin, Bitwise is optimistic that Bitcoin, along with leading altcoins such as Ethereum and Solana, will reach new peak prices by the year 2025.

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2024-12-27 09:42