Bitwise Launches Bitcoin Standard ETF, Tracking Corporate BTC Holdings
Bitwise Asset Management has introduced the Bitwise Bitcoin Standard Corporations ETF, a new fund trading under the ticker OWNB. The exchange-traded fund (ETF) is designed to track publicly traded companies that hold significant Bitcoin reserves as part of their corporate treasury strategy. Fund Tracks Companies Holding Over 1,000 BTC The Bitwise Bitcoin Standard Corporations Index, which the ETF follows, includes firms with at least 1,000 BTC in their reserves. The index ranks holdings based on Bitcoin ownership, with individual companies capped at a maximum 20% weight for diversification. As of its launch, the index’s top 10 companies include MicroStrategy (MSTR), Marathon Digital Holdings (MARA), CleanSpark, Riot Platforms, and Galaxy Digital, among others. Some large corporations holding over 1,000 BTC but with Bitcoin accounting for less than one-third of their balance sheet are assigned a standard 1.5% weighting. Bitcoin as a Corporate Reserve Asset The move comes as more corporations adopt Bitcoin as a treasury reserve. According to the Federal Reserve, U.S. companies currently hold an estimated $5 trillion in cash reserves, much of it earning minimal returns. With concerns over inflation and monetary policy, several firms have turned to Bitcoin as a hedge and store of value. Bitwise’s ETF does not invest directly in Bitcoin or derivatives linked to the cryptocurrency. Instead, it offers investors exposure to companies that have integrated Bitcoin into their financial strategy. The index will rebalance quarterly, with updates on its composition announced periodically.
Bitwise Plans to Launch Bitcoin Standard ETF Targeting Firms with BTC Reserves
Bitwise Asset Management has announced plans to launch the Bitcoin Standard ETF, a fund designed to focus on companies holding significant Bitcoin reserves. The San Francisco-based investment firm revealed its strategy on Friday, emphasizing the growing role of Bitcoin in corporate balance sheets. The ETF will track the performance of publicly traded firms with substantial Bitcoin holdings, excluding direct Bitcoin investments. This distinction allows the fund to focus on companies embedding Bitcoin into their financial strategies rather than speculative investments. The planned ETF is subject to regulatory approval and marks an innovative step in merging corporate strategy with digital asset exposure. Targeting Bitcoin-Adopting Companies Bitwise’s Bitcoin Standard ETF is set to capture a niche market of corporate Bitcoin adoption. Companies like MicroStrategy, Tesla, and Marathon Digital—known for their Bitcoin reserves—are expected to feature prominently in the ETF’s portfolio. The fund aims to provide institutional and retail investors an indirect way to gain exposure to Bitcoin through equities rather than purchasing the cryptocurrency directly. By focusing on equities, the ETF avoids the complexities of managing physical Bitcoin custody, a significant hurdle for direct Bitcoin exchange-traded products. Moreover, the target companies must meet some criteria, including owning a minimum of 1,000 BTC stores, boasting a minimum of $100 million in market capitalization, and at least $1 million in daily liquidity. The condition permits private stock ownership of less than 10%. Regulatory Hurdles and Market Potential The launch of the Bitcoin Standard ETF hinges on approval from the U.S. Securities and Exchange Commission (SEC), which has historically taken a cautious approach toward cryptocurrency-based financial products. However, Bitwise is optimistic, citing the ETF’s unique structure as a differentiating factor. The product enters a competitive landscape where traditional Bitcoin ETFs have struggled to gain traction amid regulatory and market volatility. The Bitcoin Standard ETF aims to address these challenges by aligning with well-established corporate entities and their financial strategies. While the timeline for regulatory approval remains uncertain, the Bitcoin Standard ETF reflects growing confidence in Bitcoin’s long-term role within the financial ecosystem.
Bitwise Predicts $200K Bitcoin, $7K Ethereum, and $750 Solana by 2025
Cryptocurrency asset manager Bitwise has released a report forecasting Bitcoin reaching $200,000, Ethereum climbing to $7,000, and Solana surging to $750 by 2025. The projections, unveiled on Tuesday, are attributed to growing institutional adoption and advancements in blockchain technology. According to the report, the predictions mirrored macroeconomic trends, increased regulatory clarity, and ongoing innovation in decentralized finance (DeFi). Notedly, the report authors, Ryan Rasmussen, the Research Head, and Matt Hougan, the Chief Investment Officer (CIO), spotlighted several potential price-driving factors peculiar to each token. ETFs Will be Crucial in Crypto Assets Price Surge in 2025 Bitwise report highlighted that institutional investors continue to show growing interest in digital assets despite ongoing market volatility. For Bitcoin, the publicized document noted its ETF entities would attract more investors, resulting in supply shock. Like Bitcoin, Ethereum also has its ETFs. However, the entities seemed least profitable this year. The research conductors remained confident about the ETH ETFs’ reward potential next year. On its part, Solana’s meme ecosystem contributed significantly to its impressive run this year. Volatility Remains a Challenge Despite the optimistic outlook, the crypto market remains highly volatile and influenced by macroeconomic factors such as inflation and global monetary policy. The report advised investors to approach the market cautiously and emphasized the importance of diversification. Nevertheless, cryptocurrency prices have been on a rollercoaster in recent weeks, with Bitcoin trading around $100,000 at the time of the report, Ethereum at $3,830, and Solana at $229.42. While these predictions are bold, Bitwise stressed that they are not guarantees but rather scenarios based on market trends and analysis. Conclusion Bitwise’s projections arrive at a critical juncture as the cryptocurrency market seeks to recover from a turbulent year. The report underscores the duality of promise and risk in the sector, with 2025 positioned as a potential turning point for digital assets. The predictions are likely to spark debate among market analysts, with some questioning their feasibility given the challenges faced by the cryptocurrency sector. Still, Bitwise remains confident in the transformative potential of blockchain technology and its capacity to drive market growth in the coming years
