Crypto asset manager Bitwise Asset Management, overseeing $12 billion in client assets, has announced the launched the Bitwise Bitcoin Standard Corporations ETF (NYSE:OWNB) on NYSE Arca, targeting companies holding at least 1,000 Bitcoin (CRYPTO: BTC) in their corporate treasuries.
What Happened: Announced on March 11, the ETF tracks the Bitwise Bitcoin Standard Corporations Index, spotlighting over 70 publicly traded firms that have embraced Bitcoin as a treasury asset, reflecting a growing corporate trend to diversify cash reserves amid economic uncertainty.
The ETF's structure emphasizes companies with significant Bitcoin holdings, with the index weighting firms based on the amount of Bitcoin they own, though the largest holding--Strategy (NASDAQ:MSTR)--is capped at 20% to ensure diversification.
Other top holdings include MARA Holdings (NASDAQ:MSTR), CleanSpark (NASDAQ:CLSK), Riot Platforms (NASDAQ:RIOT), Boyaa Interactive, Metaplanet (TYO:3350), Aker ASA, Bitfarms (NASDAQ:BITF), BitFuFu (NASDAQ:FUFU) and Galaxy Digital (OTC:BRPHF).
Bitwise noted that corporations with Bitcoin holdings exceeding 1,000 BTC but constituting less than one-third of their balance sheet are assigned a 1.5% weighting.
The index rebalances quarterly, with changes announced in advance to maintain transparency.
Bitwise highlighted the motivations behind this corporate shift, pointing to the Federal Reserve's data showing U.S. nonfinancial corporations held over $4.5 trillion in cash and deposits as of Q3 2024.
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"According to the Federal Reserve, companies are sitting on $5 trillion in low-yielding cash today, and many are recognizing Bitcoin's value as a strategic reserve asset," Bitwise stated in their X post, suggesting firms view Bitcoin as a hedge against monetary policy risks, such as the U.S. government's $2 trillion annual deficit.
The ETF does not invest directly in Bitcoin or through derivatives, instead offering investors exposure to the financial performance of these Bitcoin-holding companies.
"Individuals have understood the Bitcoin standard for years. Now, more and more corporations do, too," Bitwise emphasized in their announcement, underscoring the growing acceptance of Bitcoin as a corporate asset.
What’s Next: Bitwise CIO Matt Hougan further elaborated on the rationale, stating in a related press release, "Companies perceive Bitcoin as a strategic reserve asset that's liquid and scarce--and not subject to the whims or money printing of any government."
The launch follows Bitwise's filing with the SEC in December 2024, reflecting a broader trend of corporate Bitcoin adoption, with firms like Strategy leading the charge by holding 499,096 BTC, valued at over $41 billion.
The ETF, distributed by Foreside Fund Services, LLC, aims to provide a regulated investment vehicle for those seeking indirect exposure to Bitcoin's market dynamics through corporate equity.
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