The asset manager Bitwise announced on March 11 the launch of the Bitwise Bitcoin Standard Corporations ETF (OWNB), a new exchange-traded fund (ETF) that invests in companies with at least 1,000 Bitcoin in their corporate balance sheets.
Bitwise news: an ETF to capitalize on companies with Bitcoin reserves
According to what was stated by Bitwise, the ETF will track the Bitwise Bitcoin Standard Corporations index, which includes companies that have accumulated significant reserves of Bitcoin in their treasuries.
This tool represents the latest innovation in the investment sector, allowing investors to gain indirect exposure to companies holding Bitcoin as a reserve.
Matt Hougan, Chief Investment Officer di Bitwise, explained the logic behind this financial instrument:
“Many people wonder why companies buy and hold Bitcoin. The answer is simple: for the exact same reasons individuals buy it.”
Hougan then emphasized that these companies view Bitcoin as a strategic reserve asset, characterized by high liquidity, scarcity, and independence from government monetary policies.
According to Bitwise, the ETF will include several companies with large reserves of Bitcoin, including:
- MicroStrategy (MSTR), company led by Michael Saylor, which acts as a true de facto Bitcoin fund.
- MARA Holdings (MARA), CleanSpark (CLSK), and Riot Platforms (RIOT), key players in the Bitcoin mining sector.
- Boyaa Interactive, company operating in the gaming sector.
- Galaxy Digital (GLXY), a major investment manager specializing in digital assets.
The Bitwise Bitcoin Standard Corporations index will be weighted based on the amount of Bitcoin held by each company, with a maximum cap of 20% for the highest participation.
The impact of the surge in Bitcoin prices on companies
In 2024, the value of Bitcoin experienced significant growth, pushing MicroStrategy’s shares to increase by over 350%, according to data from FinanceCharts.
This bull trend has encouraged a growing number of companies to accumulate Bitcoin in their asset reserves.
According to the data from BitcoinTreasuries.net, as of March 11, 2024, the total corporate Bitcoin reserves have exceeded 54 billion dollars.
MicroStrategy remains at the forefront with a reserve valued at over 41 billion dollars, confirming itself as the company with the largest allocation of Bitcoin globally.
Not only are private companies increasing their Bitcoin reserves, but also the government of the United States has announced the creation of a strategic reserve.
For the moment, this treasury will consist exclusively of Bitcoin seized by law enforcement in the context of operations against financial crimes.
Interest in new Bitcoin-related ETFs is growing
The Bitwise Bitcoin Standard Corporations ETF is not the only financial product created to capitalize on the growing interest in Bitcoin. Other asset managers are developing similar instruments to offer additional opportunities to institutional investors.
In December 2023, Strive Asset Management, founded by the former United States presidential candidate Vivek Ramaswamy, requested approval from regulators for the launch of an ETF dedicated to the so-called “Bitcoin Bonds”.
This tool involves investments in convertible bonds issued by companies that allocate a significant portion of their proceeds to the purchase of Bitcoin.
Another player in the sector, REX Shares, has announced the creation of an ETF dedicated to companies that hold Bitcoin in their corporate balance sheets.
The launch of the Bitwise Bitcoin Standard Corporations ETF marks another milestone in the evolution of financial products linked to the world of criptovalute.
With a growing demand from companies and institutional investors for Bitcoin as a store of value, instruments like ONWB offer a new opportunity to gain exposure to the digital market without directly owning cryptocurrencies.
The interest in these ETFs will continue to grow, considering that Bitcoin is taking on an increasingly central role in corporate strategies and institutional investment portfolios.