Bitwise Files Application for an ETF Tracking Companies Holding Bitcoin Reserves

Bitwise, a company that manages exchange-traded funds (ETFs), has proposed a new fund that will invest in publicly traded companies with significant holdings in Bitcoin.

The proposed fund, named the Bitwise Bitcoin Standard Corporations ETF, will invest in companies that have adopted the “Bitcoin standard” and hold over 1,000 Bitcoin in their corporate treasuries.

In order to be included in the ETF, these companies must have a market capitalization of at least $100 million, a minimum average daily liquidity of at least $1 million, and a public free float of under 10%.

Unlike traditional ETFs, which assign weight to holdings based on a company’s market cap, Bitwise’s ETF will assign weight based on the market value of a company’s Bitcoin holdings, with a maximum weight of 25%.