Key Takeaways:
The ETF targets companies with substantial Bitcoin reserves.
It employs capped weighting and quarterly rebalancing to limit volatility.
This approach signals a notable shift in corporate treasury strategies.
Bitwise Asset Management has launched the Bitwise Bitcoin Standard Corporations ETF, trading under the ticker OWNB.
The exchange-traded fund is designed to expose investors to companies holding significant Bitcoin reserves as part of their corporate treasury strategies.
The ETF follows the Bitwise Bitcoin Standard Corporations Index, which tracks firms integrating Bitcoin into their financial holdings.
Bitwise ETF Targets Companies Using Bitcoin as a Treasury Reserve
According to Bitwise, the ETF aims to capitalize on the growing trend in which companies allocate some of their cash reserves to Bitcoin.
Matt Hougan, the company’s Chief Investment Officer, stated that businesses collectively hold trillions of dollars in cash while the U.S. government runs an annual deficit exceeding $2 trillion.
He explained that many firms now view Bitcoin as a strategic reserve asset that is both liquid and scarce.
Hougan noted that companies are increasingly considering Bitcoin as an alternative store of value, independent of government monetary policies.
“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. We think companies are only getting started here, and this ETF gives investors exposure to innovative firms at the forefront of this trend,” Hougan said.
Bitwise CEO Hunter Horsley highlighted that more than 70 companies now hold Bitcoin in their corporate treasuries, following the example set by firms such as Strategy.
He said that businesses are acquiring Bitcoin for the same reasons as individual investors, viewing it as a hedge against monetary instability.
Horsley also emphasized that the ETF allows investors to gain diversified exposure to companies that have embraced Bitcoin as part of their financial strategies.
OWNB tracks companies with at least 1,000 Bitcoin in their treasuries.
At launch, the top holdings in the index included Strategy, MARA Holdings, CleanSpark, Riot Platforms, Boyaa Interactive, Metaplanet, Aker ASA, Bitfarms, BitFuFu, and Galaxy Digital.
The index weighs holdings based on the amount of Bitcoin owned while maintaining diversification limits, including capping the largest holding at 20 percent at each rebalance.
Additionally, companies with Bitcoin holdings representing less than 33 percent of their total assets receive an automatic fixed weighting of 1.5 percent. The index is rebalanced quarterly.
MicroStrategy Leads Bitwise’s Bitcoin Treasury ETF with 20.87% Allocation
At launch, Strategy held the largest allocation in the index at 20.87%.
Bitcoin mining firm MARA Holdings accounted for 12.12%, while CleanSpark and Riot Platforms, both mining-focused companies, represented 6.26% and 6.23%, respectively.
The index also includes companies outside the U.S., with China-based Boyaa Interactive at 5.75% and Japan’s Metaplanet at 5.25%.
Norwegian industrial investment firm Aker ASA held 4.63%, while Bitcoin mining firms Bitfarms and BitFuFu had 4.30% and 4.03%, respectively.
Financial services firm Galaxy Digital rounded out the top holdings with 3.99%.
Bitwise stated that the ETF will not invest in Bitcoin directly or through derivatives but instead seeks to capture the financial performance of corporations with significant Bitcoin exposure.
The index is rebalanced quarterly to maintain its structure.
The firm reported that as of the third quarter of 2024, U.S. nonfinancial corporations collectively held over $4.5 trillion in cash and deposits and nearly $1 trillion in U.S. Treasuries.
Bitwise suggested that these cash reserves are a key reason companies are turning to Bitcoin as an alternative asset.
As it stands now, it is clear that the newly launched ETF is part of Bitwise’s broader strategy to provide regulated exposure to Bitcoin through financial products.
To provide an additional layer of transparency, the fund is distributed by Foreside Fund Services, which is not affiliated with Bitwise or its subsidiaries.
Frequently Asked Questions (FAQs)
Many companies now hold Bitcoin to hedge against inflation and boost returns beyond low-yield cash. This marks a broader shift toward diversified, digital treasury strategies.
The ETF caps exposure for each firm and rebalances quarterly. This strategy limits volatility while giving investors steady access to companies pursuing Bitcoin-based treasury methods.
Widespread adoption may spur regulatory updates and reshape treasury practices. This trend could redefine liquidity management and risk mitigation in today’s uncertain economic climate.
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