- Bitwise launches an ETF called Bitcoin Standard Corporations
- It tracks publicly traded companies that hold 1,000 or more Bitcoin as part of their financial holdings
- For the sake of diversification, the largest individual holding is restricted to 20% at every rebalancing
Seems Bitcoin is becoming a corporate standard. And the latest instance of this emerging trend comes from Bitwise, a leading crypto asset manager, that just introduced the Bitwise Bitcoin Standard Corporations ETF (OWNB) focused on companies holding Bitcoin as treasury reserves.
This exchange-traded fund (ETF) tracks publicly traded companies that hold at least 1,000 Bitcoin as part of their financial holdings. Bitwise has now identified over 70 such organizations.
Holdings are weighted based on how much Bitcoin each company owns, with a 20% cap per company to maintain diversification. The ETF also rebalances quarterly to account for changes in companies’ Bitcoin holdings and valuations.
Bitcoin as a Strategic Reserve
The launch of OWNB is yet another evidence of the increasing corporate trend of using Bitcoin as a strategic reserve to mitigate inflation and currency changes.
Use cases range broadly, from the United States government building a strategic Bitcoin reserve to Sunnyvale’s Public Safety Officers’ Association that recently became the first police and fire department in the US to hold Bitcoin.
Related: Year of Crypto IPOs? Bitwise Predicts 2025 Market Trends
Bitwise’s move is noteworthy because by investing in companies with substantial Bitcoin holdings, investors can gain indirect exposure to Bitcoin’s performance without directly owning the cryptocurrency. This method may be favored by those who prefer clear regulations but reduced volatility compared to direct crypto investments.
Bitwise Asset Management
Founded in 2017, the company is one of the more acclaimed cryptocurrency investment firms that specializes in crypto index funds, ETFs, and institutional-grade investment products.
Considering Bitwise’s history of launching some of the first regulated crypto investment products in the US, the OWNB development may not be so surprising, after all.
Related: Bitwise Files for Aptos ETF: APT Price Jumps 12% – Market Reacts
It made one of the first spot Bitcoin ETFs to be approved in the country, dating back to January last year. Bitwise also created one of the first and largest crypto index funds, which tracks the top 10 cryptocurrencies by market capitalization.
As such, this news could have a solid impact on the crypto world, if for nothing else than for the investors who might prefer this novel approach of participating in the Bitcoin market through equity investments.
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