Bitwise is launching an exchange traded fund (ETF), which will hold stocks of Bitcoin-related companies.BTCOn March 11, the asset manager announced that it was able to ) Treasurys.
The Bitwise Bitcoin Standard Corporations ETF is a Bitcoin ETF. “seeks to track the Bitwise Bitcoin Standard Corporations Index, a new equity index of companies with at least 1,000 bitcoin in their corporate treasuries,” Bitwise said.
This ETF is one of a number of investment products that aim to provide exposure to large Bitcoin holdings by companies.
“A lot of people wonder: Why do companies buy and hold bitcoin? The answer is simple: For the exact same reasons people do,” Matt Hougan is Bitwise’s Chief Investment Officer.
“These companies perceive bitcoin as a strategic reserve asset that’s liquid and scarce — and not subject to the whims or money printing of any government.”
Bitcoin is a popular cryptocurrency among public companies. Source: BitcoinTreasuries.NET
Related: Trump-linked Strive files for ‘Bitcoin Bond’ ETF
Bitcoin Buyers Index
The ETF has the largest stakes in Strategy (MSTR), Michael Saylor’s Bitcoin de facto fund. It also holds Bitcoin miners like MARA Holdings, CleanSpark and Riot Platforms.
The list also contains stocks like Boyaa Interactive (a gaming company) and Galaxy Digital Investment Managers (GLXY).
The asset manager explained that Bitwise’s Index is weighted according to the Bitcoin holdings, and the biggest Bitcoin holding is capped at 20 percent.
Largest holdings of OWNB Source: BItwise
Bitcoin Treasuries Take off
According to Strategy, the rising Bitcoin price in 2024 will send shares of Strategy up by more than 350%. data FinanceCharts. After the move, dozens more companies began to accumulate Bitcoin Treasuries. According to BitcoinTreasuries.NET, corporate Bitcoin holdings exceed $54 billion as of March 11.
Data shows that the company Strategy continues to be the top corporate Bitcoin investor, having a Bitcoin holdings worth over $41 billion.
Even the US Government has created a strategic Bitcoin reserveInitial Bitcoin seizures by law enforcement.
Bitwise is not the only asset manager to launch similar products. Strive was founded by Vivek, the former US presidential candidate. asked United States regulators for permission List an ETF that invests in convertible bonds issued to corporate Bitcoin purchasers and Strategy.
ETFs are designed to give investors exposure to a wide range of securities. “Bitcoin Bonds,” Description “convertible securities” Companies that have plans to “invest all or a significant portion of the proceeds to purchase Bitcoin,” According to the file.
REX Shares Asset Manager is also planning to launch an ETF for corporate Treasury in Bitcoin, according to the report. said On March 10, 2019.
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Source: cointelegraph.com
