The rush for Bitcoin by publicly traded companies is attracting the attention of asset managers.
Bitwise and Strive Financial have submitted requests to the SEC to launch ETFs tied to companies that hold their reserves in Bitcoin.
Bitwise’s initiative takes shape in the “Bitcoin Standard Corporations ETF,” a fund that will invest in companies that have adopted the strategy of accumulating significant amounts of Bitcoin. To qualify, companies must own at least 1,000 bitcoins, in addition to meeting market capitalization requirements of over $100 million and average daily liquidity exceeding one million dollars.
Instead of being based on the market capitalization of the companies, the weight in the ETF portfolio will be determined by the value of their Bitcoin reserves. This approach could see medium-sized companies with significant Bitcoin reserves taking a larger weight than larger companies with smaller holdings.
Meanwhile, Strive Financial, a company co-founded by Vivek Ramaswamy, has presented its proposal for the “Strive Bitcoin Bond ETF.” The fund will mainly focus on convertible bonds issued by MicroStrategy and other companies that invest a portion of their funds in Bitcoin. The main goal of the fund is to allow investors to gain less volatile exposure to Bitcoin without having to own it.
