Bitwise Unveils Bitcoin Standard ETF Amid $475M Inflows to Bitcoin ETFs

Bitcoin ETFs witnessed a resurgence on December 26, with net inflows of $475.2 million marking a strong recovery after a week of significant outflows. This renewed interest coincides with Bitwise Asset Management’s announcement of the Bitcoin Standard ETF, designed to track companies adopting Bitcoin as a core treasury asset.

ETFs Bounce Back with Strong Inflows

Data from Farside Investors highlights a broad recovery in Bitcoin ETF inflows, led by Fidelity’s Wise Origin Bitcoin Fund, which attracted $254.4 million. ARK 21Shares followed with $186.9 million in inflows, while BlackRock’s iShares Bitcoin Trust ETF added $56.5 million.

Despite this positive momentum, Bitwise’s BITB and Grayscale’s Bitcoin Trust faced outflows of $8.3 million and $24.2 million, respectively.

Introducing the Bitcoin Standard ETF

Bitwise’s proposed Bitcoin Standard ETF represents a new approach to crypto investment by focusing on companies holding at least 1,000 BTC in reserves. Firms must also meet rigorous financial benchmarks, including:

• Market Cap: Minimum of $100 million
• Liquidity: Daily trading volume of at least $1 million
• Diversification: No single company exceeding 25% of the fund’s allocation

The ETF plans to allocate 80% of its net assets to Bitcoin-focused corporations, weighting companies based on their Bitcoin holdings. Potential candidates include MicroStrategy, Metaplanet, and Bitcoin miners like Marathon Digital.

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A Modern Investment Alternative

Joe Burnett, Director of Market Research at Unchained, described the Bitcoin Standard ETF as a modern alternative to traditional indices, emphasizing that its success will depend on a company’s ability to generate positive Bitcoin returns while maintaining its holdings.

This innovative approach appeals to investors looking to align their portfolios with Bitcoin-focused corporations, offering a diversified yet targeted exposure to the growing adoption of Bitcoin as a treasury asset.

Conclusion

The combination of strong ETF inflows and innovative strategies like Bitwise’s Bitcoin Standard ETF highlights the evolving landscape of Bitcoin investment. As institutions deepen their involvement, these developments could further cement Bitcoin’s role as a critical asset in the modern financial ecosystem.