Unlike traditional ETFs that weigh holdings based on market capitalization, this fund will prioritize companies based on the market value of their Bitcoin treasuries, with a maximum weighting of 25% for any single stock to ensure diversification.

Bitwise has filed to launch the Bitwise Bitcoin Standard Corporations ETF, which will specifically invest in publicly traded companies that hold a minimum of 1,000 Bitcoin.

This ETF aims to provide investors with diversified access to firms adopting a Bitcoin standard, reflecting the growing demand for Bitcoin investment products.

For instance, MicroStrategy, which holds 444,262 Bitcoin, is expected to dominate the ETF despite Tesla's larger market cap of $1.42 trillion and its holding of 9,720 Bitcoin.

Eligible securities for the ETF include common stock, American and Global Depositary Receipts, and other equity units from both U.S. and international companies, including those in emerging markets.

The ETF will be updated quarterly based on public corporate reports, with company weights determined by their Bitcoin holdings.

To qualify for inclusion in the ETF, companies must have a market capitalization of at least $100 million, daily liquidity of at least $1 million, and a public free float of under 10%.

This move indicates a significant shift toward institutional interest in direct Bitcoin exposure, contrasting with previous years when investments were primarily made through crypto firms.

The ETF filing comes amidst a trend of public companies purchasing Bitcoin to enhance their stock prices, as Bitcoin's value surged 117% in 2024, reaching a record high of $108,000 in December.

While these ETFs present new investment opportunities as Bitcoin adoption increases, they also carry inherent risks and uncertainties.

The introduction of this ETF aligns with a broader trend of increased institutional involvement in Bitcoin, with major asset managers like BlackRock now more favorable towards cryptocurrency.

The proposal comes amid a surge in investment products linked to Bitcoin, driven by its recent performance, which is appealing to institutional investors.