Bitwise Files For ETF To Track Firms That Hold At Least 1K BTC

Bitwise Files For New ETF That Will Track Companies With At Least 1,000 BTC On Their Balance Sheets

Updated: 27 December 2024

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Bitwise has filed to launch a new exchange-traded fund (ETF) that will hold stocks of publicly traded companies that have at least 1,000 Bitcoin (BTC) on their balance sheets.

According to a Dec. 26 regulatory filing, the Bitwise Bitcoin Standard Corporation ETF will invest in companies that have adopted the “Bitcoin standard.”

New Bitwise ETF Weighting Will Be Based On BTC Holdings Instead Of Market Caps

To qualify for inclusion in the ETF, companies will also need to have a minimum average daily liquidity of at least $1 million and a public free float less than 10%. They will need to have a market cap of at least $100 million as well.

While there is a minimum market cap requirement, the Bitwise Bitcoin Standard Corporation ETF will not give weight to stock holdings based on each company’s size. Instead, the new fund’s weightings will be based on the dollar value of each company’s BTC holdings.

This would mean that a company like Tesla, with a market cap of $1.42 trillion and 9,720 BTC in its reserves, will have a lower weighting in the proposed Bitwise fund than MicroStrategy, which has a capitalization of $83.5 billion and holds 444,262 Bitcoins.

US Spot Bitcoin ETFs Break Outflow Streak

Bitwise’s filing comes as US spot Bitcoin ETFs managed to break their outflow streak. From Dec. 19 to Dec. 24, the funds suffered net daily outflows. The most capital was pulled out of the funds on Dec. 19, with $671.9 million exiting the investment products collectively on the day, according to Farside Investors data. The funds then recorded no new flows on Dec. 25.

𝗕𝗶𝘁𝗰𝗼𝗶𝗻 𝗘𝗧𝗙 𝗙𝗹𝗼𝘄 (𝗨𝗦$ 𝗺𝗶𝗹𝗹𝗶𝗼𝗻) – 2024-12-26

TOTAL NET FLOW: 475.2

IBIT: 56.5
FBTC: 254.4
BITB: -8.3
ARKB: 186.9
BTCO: 0
EZBC: 0
BRRR: 0
HODL: 2.7
BTCW: 0
GBTC: -24.2
BTC: 7.2

For all the data & disclaimers visit:https://t.co/Wg6Qpn0Pqw

— Farside Investors (@FarsideUK) December 27, 2024

The trend changed on Dec. 26, with investors sending $475.2 million back into the funds. Fidelity’s FBTC led in net inflows after $254.4 million re-entered its reserves. Meanwhile, Bitwise’s BITB and Grayscale’s GBTC continued to bleed with $8.3 million and $24.2 million outflows, respectively.