Bitwise, Ramaswamy’s Strive file for ETFs investing in companies with Bitcoin treasuries
2024-12-27
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Two new ETFs seek to capitalize on the growing trend of corporations adopting Bitcoin treasuries, according to recent SEC filings.
One offering from asset manager Bitwise, which already manages several prominent crypto ETFs, would invest in companies that have "adopted the 'bitcoin standard.'" The prospectus defines this as holding more than 1,000 BTC and meeting basic size and liquidity requirements: a market capitalization of over $100 million, average daily liquidity of over $1 million, and a public free float of less than 10%. 
The fund, dubbed the Bitwise Bitcoin Standard Corporations ETF, will purchase shares in the qualifying companies weighted not by the companies' market capitalizations, as is commonly seen in ETFs, but by the value of their bitcoin holdings. That means if a mid-sized tech company decided to put a significant portion of its treasury into bitcoin, it might have a larger weight in this ETF than a much bigger company that holds closer to the minimum 1,000 bitcoin required to qualify for inclusion. 
Another offering was filed for by Strive, an asset manager co-founded by Vivek Ramaswamy, who is slated to serve as the co-lead of the Department of Government Efficiency (DOGE) alongside Elon Musk. Strive's prospectus for its Strive Bitcoin Bond ETF explicitly calls out MicroStrategy, describing the purpose of the fund as "[to] get exposure to convertible securities issued by MicroStrategy Incorporated...or other companies that Strive...expects will invest all or a significant portion of the proceeds to purchase Bitcoin (collectively, 'Bitcoin Bonds')."
Unlike Bitwise's offering, the Bitcoin Bond ETF is classified as "non-diversified," meaning the fund may invest more in assets from a particular issuer without a specific weighting scheme. 
'BTC treasury operations virus'
The new ETF filings come as bitcoin treasury adoption by mainstream companies grows. Shares of KULR Technology Group soared to an all-time high on Thursday after the company announced it had purchased $21 million worth of bitcoin (217.18 BTC) in accordance with its previously-announced bitcoin treasury strategy, which could see the company allocate up to 90% of its spare cash to the cryptocurrency, according to Investopedia.
KULR would have to make four more similar-sized purchases before qualifying for the Bitwise ETF's 1,000 BTC minimum. But Semler Scientific would seemingly make the cut, with its treasury of 1,873 BTC, as of the beginning of the month. Well-known companies like Tesla and MicroStrategy would certainly qualify as well, of course. 
"The btc treasury operations virus is spreading," wrote ETF Store President Nate Geraci on X, commenting both filings. 
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