Bitwise Asset Management has filed for a new Exchange-Traded Fund (ETF) focused on companies adopting the “Bitcoin Standard.” The ETF, if approved, would hold shares of publicly traded companies with at least 1,000 Bitcoin in their corporate treasuries.

The filing was submitted to the US Securities and Exchange Commission (SEC) on December 26, 2024, under the title Bitcoin Standard Corporations ETF (BTCX). According to the filing, the ETF aims to offer investors indirect exposure to Bitcoin through equity investments in corporations that are deeply committed to holding the cryptocurrency.‍

Understanding the “Bitcoin Standard”

Bitwise defines the “Bitcoin Standard” as a practice where companies allocate significant portions of their corporate treasuries—at least 1,000 BTC—to Bitcoin, signaling a strong commitment to the cryptocurrency. The ETF would include stocks of firms that meet this criterion, making it an appealing choice for investors who believe in the long-term value of Bitcoin but prefer exposure through traditional financial instruments.‍

Nate Geraci’s Take

Nate Geraci, President of the ETF Store, highlighted the potential impact of the filing in a tweet, noting that the “Bitcoin treasury operations virus is spreading.” This refers to the increasing trend of corporations adding Bitcoin to their reserves as a hedge against inflation and a bet on its long-term viability as a store of value.

The concept builds on a growing movement among high-profile companies to adopt Bitcoin as part of their financial strategies. Companies such as MicroStrategy, which currently holds over 150,000 BTC, and Tesla, are often cited as pioneers in this space.‍

Key Features of the ETF

The ETF will focus exclusively on companies that meet specific criteria regarding Bitcoin holdings. Bitwise emphasized in the filing that this targeted exposure offers a unique investment opportunity for those interested in Bitcoin’s integration into traditional finance.

The proposed ETF would track companies across multiple sectors, with Bitcoin treasury holdings as the unifying factor. This approach contrasts with traditional Bitcoin ETFs, which track the cryptocurrency’s price directly or indirectly through futures.‍

Awaiting SEC Decision

The fate of the ETF now lies with the SEC, which has been cautious in approving cryptocurrency-related ETFs. While the regulatory body has approved Bitcoin futures ETFs, spot Bitcoin ETFs remain under scrutiny, with several high-profile applications still awaiting decisions.

The Bitcoin Standard Corporations ETF represents an alternative approach, focusing on equity exposure rather than direct investment in Bitcoin. This may offer a pathway to regulatory approval while broadening the options available to crypto-curious investors.