Bitwise launches Bitcoin corporate treasury ETF
Bitwise recently announced the launch of the Bitwise Bitcoin Standard Corporations ETF (OWNB), which is designed to provide investors exposure to publicly traded companies that hold significant Bitcoin assets. The ETF, introduced on March 11, aims to track the Bitwise Bitcoin Standard Corporations Index—an equity index comprised of companies that possess a minimum of 1,000 Bitcoin in their corporate treasuries.
Matt Hougan, Bitwise’s chief investment officer, articulated the rationale behind corporate Bitcoin investments, stating, “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.” The introduction of this ETF represents a growing trend among institutional investors recognizing the merit of accumulating Bitcoin as a hedge against traditional financial risks.
As of the ETF’s launch date, its largest holdings included well-known entities in the Bitcoin space such as MicroStrategy (MSTR), a company closely associated with Michael Saylor, a vocal advocate for Bitcoin accumulation. Additionally, it features holdings in Bitcoin mining companies including Marathon Digital Holdings (MARA), CleanSpark (CLSK), and Riot Platforms (RIOT), along with stocks from firms like Boyaa Interactive and Galaxy Digital (GLXY).
The methodology of the index emphasizes Bitcoin allocation, wherein the largest holdings are capped at 20% to maintain balance and mitigate risk. This approach allows for diversified exposure to the business landscape rooted in Bitcoin adoption.
Corporate Bitcoin investments have exploded in size and scope. As of March 11, corporate Bitcoin holdings surpassed $54 billion, with MicroStrategy continuing to lead as the largest corporate holder with a treasury valued at over $41 billion. The price surge in Bitcoin throughout 2024, which propelled MicroStrategy’s stock by more than 350% according to data from FinanceCharts, has prompted many companies to follow suit and bolster their Bitcoin treasuries.
Notably, even the U.S. government has got involved in Bitcoin, creating a strategic reserve primarily composed of Bitcoin confiscated through law enforcement operations. This adds another layer of institutional credibility to the asset.
Meanwhile, the increasing popularity of Bitcoin-focused investment products is evident. Asset manager Strive, established by former U.S. presidential contender Vivek Ramaswamy, has also sought regulatory approval to introduce an ETF that targets convertible bonds issued by corporations invested in Bitcoin. REX Shares is preparing to unveil its own Bitcoin corporate treasury ETF as well.
As this market evolves, the introduction of ETFs like the Bitwise Bitcoin Standard Corporations ETF signals a significant shift in how institutional investors engage with Bitcoin, encouraging broader acceptance and institutional adoption of cryptocurrency assets.
