Bitwise Asset Management has filed with regulators to launch the Bitwise Bitcoin Standard Corporations ETF, a new exchange-traded fund (ETF) designed to invest in publicly traded companies holding significant Bitcoin reserves.

In its regulatory filing on December 26, Bitwise outlined strict inclusion criteria. Eligible companies must:

  • Hold at least 1,000 BTC in their corporate treasury.

  • Maintain a market capitalization of $100 million or more.

  • Exhibit an average daily liquidity of $1 million or higher.

  • Ensure a public float of at least 10%.

The ETF will prioritize companies based on the value of their Bitcoin reserves when determining stock weight. To promote diversification, no single stock will exceed 25% of the ETF's total weight.

Corporate Bitcoin Adoption Gains Momentum

Bitwise’s filing comes as a growing number of public companies adopt Bitcoin as a strategic reserve asset to boost stock value and hedge against inflation.

Bitcoin’s remarkable 117% surge in 2024, which saw the cryptocurrency briefly surpass the $100,000 mark in November before stabilizing around $95,800, has attracted attention from corporate treasuries.

Recent adopters include KULR Technology Group, which purchased 217.18 BTC for $21 million on December 16. Following the announcement, KULR’s stock surged over 40%, closing at an all-time high of $4.80.

Broader Market Interest in Bitcoin-Backed Assets

Bitwise isn’t the only firm eyeing opportunities in Bitcoin-focused investments. Strive Asset Management, founded by entrepreneur Vivek Ramaswamy, recently filed for an ETF focusing on “Bitcoin Bonds.” The proposed fund will invest in convertible bonds issued by companies with substantial Bitcoin holdings, such as MicroStrategy, a leader in corporate BTC reserves.

A Strategic Shift in Corporate Finance

As the trend of corporate Bitcoin adoption accelerates, ETFs like Bitwise’s Bitcoin Standard Corporations ETF offer investors a way to capitalize on this emerging financial strategy. By targeting firms with significant BTC reserves, these funds aim to bridge traditional equity markets with the rapidly evolving world of digital assets.

The proposed ETF highlights a significant shift in how companies manage reserves, signaling Bitcoin’s growing role in corporate treasury strategies and its increasing mainstream acceptance.