Two prominent asset managers, Bitwise and Strive Financial, have recently filed for exchange-traded funds (ETFs) aimed at leveraging the growing trend of corporate Bitcoin treasuries. These filings mark a significant step in the institutionalization of Bitcoin as companies increasingly adopt it for treasury management. Both ETFs target different aspects of the corporate Bitcoin landscape, signaling diversified approaches to this emerging market.

Bitwise, a well-known crypto-focused asset manager, has proposed the "Bitcoin Standard Corporations ETF." This fund seeks to invest in companies that have adopted what the firm calls the "Bitcoin standard." According to the prospectus filed with the U.S. Securities and Exchange Commission (SEC), eligible companies must hold over 1,000 BTC in reserves, have a market capitalization exceeding $100 million, and meet liquidity requirements, such as an average daily liquidity of over $1 million.

Unlike traditional ETFs that often weigh holdings based on market capitalization, this fund will allocate weights based on the value of each company's Bitcoin reserves. This unique structure allows mid-sized companies with substantial Bitcoin holdings to have a more significant presence in the ETF compared to larger firms with smaller Bitcoin reserves. Notable companies likely to qualify include Tesla, MicroStrategy, and Semler Scientific, which already hold significant Bitcoin reserves.

Strive Financial, co-founded by Vivek Ramaswamy, has filed for the "Strive Bitcoin Bond ETF," which takes a different approach. This actively managed fund focuses on convertible securities and derivatives linked to Bitcoin, primarily inspired by MicroStrategy's treasury strategy. According to Strive’s filing, the fund will invest at least 80% of its assets in Bitcoin-linked securities and related instruments, including options and swaps.

Operating as a non-diversified fund, the Strive Bitcoin Bond ETF allows for concentrated holdings, with significant allocations to single issuers like MicroStrategy. The fund’s performance will be closely tied to the outcomes of MicroStrategy’s Bitcoin investments. The fund plans to trade on the New York Stock Exchange and will adopt a "manager of managers" structure, enabling Empowered Funds, LLC, to oversee the portfolio while appointing or replacing sub-advisers without shareholder approval.

These ETF filings coincide with a broader trend of corporate Bitcoin adoption. For example, KULR Technology Group recently announced its first Bitcoin purchase worth $21 million, with plans to allocate up to 90% of its spare cash to Bitcoin. This strategy aligns with a growing list of companies integrating Bitcoin into their treasury operations, including MicroStrategy, which began its Bitcoin treasury strategy in 2020.

Nate Geraci, president of the ETF Store, remarked on X, "The BTC treasury operations virus is spreading," reflecting the increasing adoption of Bitcoin as a treasury asset. Companies like Semler Scientific, with 1,873 BTC in reserves, demonstrate how corporate participation in Bitcoin treasuries is expanding.

The introduction of these ETFs could provide new avenues for investors to gain exposure to Bitcoin through traditional financial instruments. Bitwise’s focus on companies with substantial Bitcoin reserves and Strive’s emphasis on Bitcoin-linked securities highlight different strategies to capitalize on this trend. If approved, these funds could further institutionalize Bitcoin and accelerate its adoption in corporate treasuries worldwide.

While the SEC reviews these filings, the growing momentum in Bitcoin treasury strategies underscores the Bitcoin’s increasing relevance in corporate and investment portfolios. Investors and market observers will be watching closely to see how these developments shape the broader financial landscape.

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