Bitwise Launches ETF Tracking Companies That Hold Bitcoin

Crypto asset manager Bitwise has launched a new ETF that gives investors exposure to publicly traded companies with the biggest Bitcoin stashes. 

In a Tuesday announcement, the San Francisco-based firm said that its new Bitwise Bitcoin Standard Corporations ETF—OWNB—tracks 21 firms that hold 1,000 Bitcoins or more. 

The index includes software firm Strategy (formerly MicroStrategy), Bitcoin miner MARA, Jack Dorsey’s payments company Block, America’s biggest crypto exchange, Coinbase, and even electric car company Tesla. 

All companies trade on the Nasdaq or New York Stock Exchange. Many are Bitcoin miners. 

Bitwise said in its announcement on X: “Why are more corporations adopting the Bitcoin standard? According to the Federal Reserve, companies are sitting on $5 trillion in low-yielding cash today, and many are recognizing Bitcoin’s value as a strategic reserve asset.”

It’s natural for firms in the Bitcoin mining space to hold the cryptocurrency as they get rewarded by digital coins for keeping the network secure. But Nasdaq-listed Tesla, for example, bought Bitcoin in 2021 to maximize returns on its cash holdings. 

Companies like Strategy—currently the largest corporate holder of BTC, with 499,096 coins today worth nearly $40 billion—argue that Bitcoin is the best store of value and the most efficient way to get shareholders a return on their investment.

According to Strategy co-founder and chairman Michael Saylor, the company back in 2020 was sitting on half a billion dollars in cash. When it started buying the digital asset during the COVID-19 pandemic, it saved the company. 

Since the company adopted a “Bitcoin standard” in August 2020, the firm’s stock has shot up in value by more than 1,800%. 

Edited by James Rubin