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- Bitwise launches Bitcoin Standard Corporations ETF to track public companies holding at least 1,000 BTC in their balance sheets.
- The ETF adjusts company weightings quarterly and ensures diversification, with a 20% cap per entity to balance exposure.
Bitwise has once again shaken up the investment industry by introducing the Bitwise Bitcoin Standard Corporations ETF (OWNB). The ETF is designed to track public companies that hold at least 1,000 Bitcoin (BTC) on their balance sheets. With this move, Bitwise positions itself even further in offering digital asset-based investing options among the rising institutional curiosity about Bitcoin.
Bitcoin on Corporate Balance Sheets? Why Not!
As is well known, numerous big companies are beginning to see Bitcoin as a reliable reserve asset. Particularly for companies trying to guard their assets from inflationary pressures, its decentralized character and limited supply appeal. Bitwise has caught this trend and assembled it into an ETF open to institutional as well as retail investors.
With a maximum cap of 20% for a single organization to guarantee diversification, OWNB will weight corporations depending on the quantity of Bitcoin they possess. Companies with less than 33% of their assets in Bitcoin are automatically weighted at 1.5%.
Quarterly updates of the index will also help to keep it reflecting the most pertinent Bitcoin holdings available on the market.
Big Players Behind This ETF
The three companies having the most percentage of this ETF at launch were CleanSpark (6.26%), MARA Holdings (12.12%), and Strategy (20.87%).
Reflecting increasing confidence in Bitcoin as a long-term asset class, the most recent statistics show that public firms possess together more than 591,817 BTC. Trading on NYSE Arca, the ETF itself boasts a 0.85% cost ratio.
Bitwise Expands to Europe and New Partnerships
Furthermore, CNF previously reported that Bitwise started trading the Bitwise Diaman Bitcoin & Gold ETP (BTCG), now traded on Euronext Paris and Amsterdam.
Using a dynamic allocation approach catered to the state of the market, this product gives European investors exposure to Bitcoin and gold in one package. Based on the Ulcer Index, which gauges price volatility and depth of market losses, the ETP is calculated.
This move shows Bitwise’s approach of designing investment products more adaptable to the demands of investors in different areas and with more flexibility. Bitwise has also partnered with Maple Finance to provide institutional clients with more security and open access to on-chain credit and DeFi investing options.
Bitwise Secures $70M to Accelerate Financial Innovations
Previously, Bitwise has raised $70 million in a round headed by Electric Capital in order to quicken the creation of its financial products. Participating were big players including MassMutual, Highland Capital, and MIT Investment Management Company.
The money will be utilized to improve the balance sheet of the company and hasten the development of investment solutions comprising beta, alpha, and other on-chain solutions.
Meanwhile, as of press time, BTC is swapped hands at about $81,403.44, up 1.48% over the last 24 hours, driving its market cap to surpass the $1.6 trillion mark.
