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Bitwise Launches New Bitcoin-Treasury ETF
On 11th March, Bitwise made an exhilarating announcement about the launch of its latest financial product. The exchange-traded fund (ETF), aptly named the Bitwise Bitcoin Standard Corporations ETF (OWNB), aims to provide exposure to firms with substantial Bitcoin treasuries. According to Bitwise, this innovative ETF seeks to track its newly created index, which represents companies holding at least 1,000 Bitcoins in their corporate coffers. You can read more about this momentous occasion on Business Wire.
The Motive Behind Company’s Bitcoin Holdings
Ever wondered why certain companies are heavily invested in Bitcoin? Matt Hougan, the Chief Investment Officer at Bitwise, provides a succinct explanation. He suggests that the rationale for companies to buy and hold Bitcoin is fundamentally similar to that of individuals: as a hedge against inflation and as a strategic reserve asset. Bitcoin, he argues, is both liquid and scarce, attributes that make it appealing as an alternative to government-issued currencies. This perspective echoes the sentiments shared by many industry experts (Cointelegraph).
Understanding the Index of Bitcoin Buyers
As of the launch date, the Bitwise ETF’s largest constituents included prominent entities such as MicroStrategy (MSTR), considered Michael Saylor’s de facto Bitcoin fund. Furthermore, the index also features other significant stakeholders, including Bitcoin miners like Marathon Digital Holdings (MARA), CleanSpark (CLSK), and Riot Platforms (RIOT). Notably, video gaming company Boyaa Interactive and investment management firm Galaxy Digital (GLXY) are included as well. Intriguingly, Bitwise’s index is meticulously weighted based on each company’s Bitcoin holdings, with a 20% cap on the largest position.
Companies Flock to Bitcoin Treasuries
The fervour for Bitcoin has not gone unnoticed. In 2024, rising Bitcoin prices caused MicroStrategy’s shares to soar by more than 350%, according to FinanceCharts. This boom prompted numerous companies to boost their Bitcoin holdings. Reports from BitcoinTreasuries.NET illuminate the staggering amount held by corporations, now surpassing $54 billion. MicroStrategy leads the pack, boasting more than $41 billion in Bitcoin reserves.
Growing Interest in Bitcoin Bond ETFs
It’s not just Bitwise that’s advancing in this exciting sphere. Asset managers like Strive and REX Shares are similarly pushing to introduce Bitcoin-focused financial products. Strive, for instance, filed for a Bitcoin Bond ETF in December. Meanwhile, REX Shares declared its intention to launch a Bitcoin corporate treasury ETF in March. These burgeoning initiatives underscore the mounting interest in Bitcoin as a key financial asset. Details about Strive’s initiative can be gleaned from Cointelegraph.
Conclusion
In conclusion, Bitwise’s launch of the Bitwise Bitcoin Standard Corporations ETF is a notable move reflecting a broader trend. Companies are increasingly eyeing Bitcoin as a strategic reserve. Meanwhile, asset managers are keen on tapping into the growing interest in digital assets. Whether you’re an investor or an observer, it’s clear that the allure of Bitcoin in corporate treasuries shows no signs of abating. As this dynamic landscape evolves, staying informed is paramount. For more insights into the crypto realm, consider delving into related stories, such as the fascinating profile of Max Burwick, the so-called ‘ambulance chaser of crypto.’
