Bitwise launches Bitcoin corporate treasury ETF

Bitwise has launched an exchange-traded fund (ETF) holding stocks of companies with large Bitcoin (BTC) treasuries, the asset manager said on March 11. 

The Bitwise Bitcoin Standard Corporations ETF (OWNB) “seeks to track the Bitwise Bitcoin Standard Corporations Index, a new equity index of companies with at least 1,000 bitcoin in their corporate treasuries,” Bitwise said. 

The ETF is the latest in a flurry of new investment products aimed at offering exposure to companies with large Bitcoin treasuries.

“A lot of people wonder: Why do companies buy and hold bitcoin? The answer is simple: For the exact same reasons people do,” Matt Hougan, Bitwise’s chief investment officer, said in a statement.

“These companies perceive bitcoin as a strategic reserve asset that’s liquid and scarce — and not subject to the whims or money printing of any government.”

Public companies are among the largest institutional Bitcoin holders. Source: BitcoinTreasuries.NET

Related: Trump-linked Strive files for ‘Bitcoin Bond’ ETF

As of March 11, the ETF’s largest holdings include Strategy (MSTR), Michael Saylor’s de facto Bitcoin fund, and Bitcoin miners such as MARA Holdings (MARA), CleanSpark (CLSK), and Riot Platforms (RIOT).

It also includes stocks such as gaming company Boyaa Interactive and investment manager Galaxy Digital (GLXY). 

Bitwise’s index is weighted based on the amount of Bitcoin held, with the largest holding capped at 20%, the asset manager said. 

OWNB’s largest holdings. Source: BItwise

In 2024, rising Bitcoin prices sent shares of Strategy soaring more than 350%, according to data from FinanceCharts. The move prompted dozens of other companies to start accumulating Bitcoin treasuries. According to BitcoinTreasuries.NET, corporate Bitcoin holdings exceed $54 billion as of March 11. 

Strategy remains the largest corporate Bitcoin holder, with a treasury worth more than $41 billion, the data shows. 

Even the US government has created a strategic Bitcoin reserve, initially comprising only Bitcoin seized by law enforcement.

Other asset managers are launching similar investment products to Bitwise’s. In December, asset manager Strive, founded by former US presidential hopeful Vivek Ramaswamy, asked United States regulators for permission to list an ETF investing in convertible bonds issued by Strategy and other corporate Bitcoin buyers. 

The ETF seeks to offer exposure to “Bitcoin Bonds,” described as “convertible securities” issued by companies that plan to “invest all or a significant portion of the proceeds to purchase Bitcoin,” according to the filing. 

Asset manager REX Shares is also preparing to launch a Bitcoin corporate treasury ETF, it said on March 10.

Magazine: Meet lawyer Max Burwick — ‘The ambulance chaser of crypto’