As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset landscape, I find the Bitcoin Standard Corporations ETF proposal from Bitwise to be a game-changer. My life journey has taught me that diversification is key to success in this space, and this new ETF offers an innovative approach by weighting stocks based on their Bitcoin holdings rather than traditional market caps.
A well-known company that issues Exchange-Traded Funds (ETFs) related to cryptocurrency has suggested a new product called the “Bitcoin Standard Corporations ETF.” This ETF aims to invest in publicly traded companies that follow a “Bitcoin standard,” meaning they hold at least 1,000 Bitcoins in their corporate reserves.
The ETF will primarily concentrate on companies with a market value exceeding $100 million, daily trading volumes surpassing $1 million, and less than 10% of their shares owned privately. Bitwise intends to regularly revise this index every three months, utilizing publicly disclosed corporate reports to modify the fund’s investments accordingly.
Bitcoin Standard Corporations ETF
In contrast to conventional Exchange-Traded Funds (ETFs) that determine stock importance based on a company’s market capitalization, Bitwise’s novel fund will allocate weights according to the market value of each firm’s Bitcoin holdings. To maintain a well-rounded exposure, no single constituent will exceed a 25% weight. This move is prompted by escalating curiosity in Bitcoin investment tools, spurred by a significant 126% increase in Bitcoin prices during the past year.
Information indicates that at least thirty international entities satisfy these conditions. Among them are notable Bitcoin investors like MicroStrategy (holding more than 444,000 BTC) and mining companies such as Marathon Digital, Riot, Tesla, and Hut 8. Most of these businesses are headquartered in the U.S., Canada, and Asia, with Japan, Hong Kong, and Thailand demonstrating significant involvement in Bitcoin integration.
The proposal comes amidst growing corporate adoption of Bitcoin as many companies seek to boost stock value by integrating Bitcoin into their treasuries. On that note, Bitwise CEO Hunter Horsley commented,
“It feels like 2025 will be a big year for new corporates adopting the Bitcoin Standard.”
Corporates Embracing Bitcoin
KULR Technology Group, a company traded on the New York Stock Exchange, has just entered the world of Bitcoin by purchasing 217.18 Bitcoins for approximately $21 million. This initial investment sets their average cost per BTC at around $96,556.53. The goal is to invest up to 90% of any excess cash they have into Bitcoin through future purchases, marking the start of a larger strategy.
This week, Matador Technologies decided to broaden its financial portfolio by incorporating Bitcoin and U.S. Dollar investments. This strategic shift aims to minimize risks linked to potential Canadian dollar depreciation. By the end of December 2024, the company intends to invest $4.5 million in Bitcoin, with further possible acquisitions through carefully planned programs.
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2024-12-27 23:10