New ETFs Target Bitcoin Treasury Adoption

Two new ETFs aim to benefit from corporations adopting Bitcoin treasuries, according to recent SEC filings.

Bitwise Bitcoin Standard Corporations ETF

One offering is from asset manager Bitwise, which already manages several notable crypto ETFs. This fund will invest in companies that have adopted the 'bitcoin standard.' The prospectus defines this as holding more than 1,000 BTC and meeting size and liquidity criteria: a market cap over $100 million, average daily liquidity surpassing $1 million, and less than 10% public free float.

The Bitwise Bitcoin Standard Corporations ETF will purchase shares in the qualifying companies, weighted by their bitcoin holdings rather than market capitalization. This means a mid-sized tech company with significant bitcoin investments could have a larger weight than a larger firm barely qualifying with 1,000 BTC.

Strive Bitcoin Bond ETF

Another offering filed by Strive, co-founded by Vivek Ramaswamy, includes the Strive Bitcoin Bond ETF. This fund will target convertible securities issued by MicroStrategy or other companies expected to invest proceeds in Bitcoin, referred to as 'Bitcoin Bonds.'

Unlike Bitwise’s ETF, the Bitcoin Bond ETF is classified as non-diversified, permitting higher asset investments from specific issuers without a fixed weighting scheme.

Rising Corporate BTC Treasury Adoption

These filings come amid increasing Bitcoin treasury adoption by mainstream companies. For instance, KULR Technology Group reached an all-time high share price after announcing a $21 million Bitcoin purchase (217.18 BTC) as part of its treasury strategy, possibly allocating up to 90% of spare cash to Bitcoin.

Though KULR needs four more purchases for the Bitwise ETF's 1,000 BTC minimum, Semler Scientific qualifies with 1,873 BTC. Notable corporations like Tesla and MicroStrategy also meet the qualifying criteria.

Nate Geraci, ETF Store President, remarked, "The BTC treasury operations virus is spreading," in response to the new ETF filings.