Key Highlights:
- Bitwise’s proposed ETF targets firms holding 1,000+ BTC, prioritizing Bitcoin reserves over market cap.
- Bitcoin soared 117% this year, peaking at $108K before settling in the $96K-$97K range.
Paradisers! Could a new ETF focusing on Bitcoin-heavy firms redefine how institutions play the crypto game? Bitwise’s latest move taps into the BTC powerhouse narrative just as Bitcoin hits a speed bump after a record-shattering year. Is this the next big thing, or just a speculative bubble waiting to burst?
Bitwise Aims for the Bitcoin Elite
Bitwise has filed for a Bitcoin Standard Corporations ETF, designed to invest in companies that hoard BTC like it’s digital gold. This isn’t your run-of-the-mill ETF; it focuses on firms with 1,000 or more BTC in their treasuries, favoring Bitcoin holdings over traditional metrics like market capitalization.
That means giants like MicroStrategy, with a jaw-dropping 444,262 BTC, could dominate the fund over firms like Tesla, despite the latter’s heftier market cap. According to Nate Geraci, president of ETF Store, this could spread the “BTC treasury operations virus” across corporate boardrooms faster than you can say “HODL.”
The ETF also imposes strict criteria: a minimum $100 million market cap, $1 million daily liquidity, and less than 10% public float. Weighted by BTC value, no single company can exceed 25% of the fund, keeping it diversified sort of.
Corporate America Goes Bitcoin Bonkers
Public companies are leaning into Bitcoin as more than just a shiny digital asset, it’s now a corporate strategy. Take KULR Technology Group, for example. Their purchase of 217 BTC for $21 million didn’t just make headlines; it boosted their stock price by 40%, closing at an all-time high of $4.80.
But Bitwise isn’t the only one innovating. Strive, a firm co-founded by Vivek Ramaswamy, has filed for a Bitcoin Bonds ETF, aiming to tap into convertible bonds from Bitcoin-heavy corporates like, you guessed it, MicroStrategy.
Bitcoin’s Wild 2024 Ride: Rally or Recoil?
After skyrocketing 117% this year to hit a high of $108K in December, Bitcoin is now taking a breather, hovering between $96K and $97K. The rally was fueled by President-elect Trump’s promises of a crypto-friendly administration and the tantalizing idea of a national Bitcoin reserve.
However, with a whopping $14 billion in BTC options contracts set to expire this Friday on Deribit, the market could see some turbulence. Profit-taking and cautious positioning are already weighing on Bitcoin’s momentum, leading some analysts to expect December could end in the red, BTC’s first monthly loss in four months.
Still, the long-term narrative remains bullish. MicroStrategy, already a $40 billion BTC behemoth, is rumored to be eyeing more purchases, turning itself into what some call the “Black Hole of Bitcoin.”
Why This Matters
Bitwise’s ETF proposal and the broader corporate shift toward Bitcoin treasuries underscore a paradigm shift in how businesses approach wealth preservation. As Bitcoin gains legitimacy, ETFs like these could drive even more institutional interest.
But the big question remains: can Bitcoin maintain its luster in 2025, or will rising interest rates and market jitters cool the frenzy? Either way, Bitwise and its fellow BTC evangelists seem ready to ride the wave, or brave the storm.
