Bitwise Launches Bitcoin Corporate Treasury ETF: A New Way to Invest in Crypto

Bitwise has introduced a new ETF that lets investors tap into companies with large Bitcoin reserves. The Bitwise Bitcoin Standard Corporations ETF (ticker: OWNB) tracks an index made up of companies holding at least 1,000 Bitcoin in their treasuries.This new strategy introduces a novel method of investing in the expanding universe of corporate Bitcoin holdings.

Public corporations are the largest institutional bitcoin holders.Source: BitcoinTreasuries.NET

Why Companies Are Stocking Up on Bitcoin

Firms are now using Bitcoin as a strategic reserve. According to Bitwise’s chief investment officer Matt Hougan, firms view Bitcoin as a scarce and liquid asset that is not influenced by government money printing. This makes it an ideal alternative to conventional cash reserves, which not only bring stability but also potential growth.

Key Holdings and Growth Opportunities

The portfolio of the ETF is diversified with the best of picks like Strategy’s stock (MSTR) headed by Bitcoin supporter Michael Saylor and prominent Bitcoin miners MARA, CleanSpark, and Riot Platforms. Some other holdings are Boyaa Interactive and Galaxy Digital. The ETF is designed so that no single holding constitutes more than 20% of its weight, helping balance risk while leveraging the growth of companies with massive Bitcoin treasuries.

A New Trend among Corporate Bitcoin Reserves

With corporate Bitcoin reserves currently standing at over $54 billion, more firms are piling in. Strategy, for instance, has seen its stocks climb over 350% in 2024 due to increasing Bitcoin prices. All this is compelling a lot of asset managers to create similar investment vehicles, an indication of high demand for access to Bitcoin-backed corporate strategies.

What This Means for Investors

Bitwise’s latest ETF offers  another tool by which investors can gain exposure to companies that recognize Bitcoin as a valuable asset. By focusing on companies with large Bitcoin treasuries, the product offers investors a combination of innovation and safety. As an increasing number of companies add Bitcoin to their balance sheets, this type of ETF could play an important part in the future of digital finance.

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