Following Strategy’s (MSTR) playbook, 70+ public companies collectively own over $60 billion of bitcoin, including Semler Scientific, MARA Holdings, Tesla, Block, and others.
Bitwise Asset Management, a leading crypto asset manager with $12 billion in client assets, announced today the launch of the first-of-its-kind Bitwise Bitcoin Standard Corporations ETF (ticker: OWNB).
The ETF seeks to track the Bitwise Bitcoin Standard Corporations Index, a new equity index of companies with at least 1,000 bitcoin in their corporate treasuries. At launch, the top 10 holdings of the index were:
- Strategy (MSTR 20.87%)
- MARA Holdings (MARA 12.12%)
- CleanSpark (CLSK 6.26%)
- Riot Platforms (RIOT 6.23%)
- Boyaa Interactive (434 HK 5.75%)
- Metaplanet (3350 JP 5.25%)
- Aker ASA (AKER NO 4.63%)
- Bitfarms (BITF 4.30%)
- BitFuFu (FUFU 4.03%)
- Galaxy Digital (GLXY CN 3.99%)
Holdings are subject to change without notice.
The index:
- Requires that a company own at least 1,000 bitcoin.
- Weights holdings by the amount of bitcoin owned, subject to certain limits.
- Limits the largest holding to 20% at each rebalance for diversification purposes.
- Automatically assigns a 1.5% weighting to any eligible companies whose bitcoin holdings comprise less than 33% of their current assets.
- Rebalances quarterly.
As of Q3 2024, U.S. nonfinancial corporations held over $4.5 trillion in currency and deposits, and nearly $1 trillion in U.S. Treasuries.1
“A lot of people wonder: Why do companies buy and hold bitcoin? The answer is simple: For the exact same reasons people do,” said Bitwise CIO Matt Hougan. “Companies are sitting on trillions of dollars in cash, and they look at the U.S. government running a more than $2 trillion annual deficit and think, ‘This isn't going to end well.’ These 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.”
The Fund will not invest in bitcoin directly or indirectly through the use of derivatives.
Founded in 2017, Bitwise offers industry-leading education and a broad suite of professional investment products spanning ETFs, private funds, multi-strategy solutions, separately managed account strategies, and staking. The firm has over 100 technology and investment professionals and serves as a partner to thousands of investment professionals and financial institutions looking to understand and gain exposure to bitcoin and other crypto assets.
RISKS AND IMPORTANT INFORMATION
Carefully consider the investment objectives, risk factors, charges, and expenses of the Bitwise Bitcoin Standard Corporations ETF (OWNB) (the “Fund”) before investing. This and additional information can be found in the Fund’s full or summary prospectus, which may be obtained by visiting ownbetf.com/materials. Investors should read it carefully before investing.
Investing involves risk, including the possible loss of principal. There is no guarantee or assurance that the methodology used to create the Index will result in the Fund achieving positive investment returns or outperforming other investment products. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
Bitcoin Standard Corporations Risk. Bitcoin Standard Corporations face unique risks as a result of holding bitcoin in their corporate treasury. The speculative perception of bitcoin may overshadow the fundamentals of such companies, leading to exaggerated price movements based on hype or fear. Companies with significant international operations may face challenges if jurisdictions impose restrictions on bitcoin usage, trade or holdings. Companies holding bitcoin may face accounting challenges, such as recording impairment losses when bitcoin prices decline, even if the holdings are not sold. This can distort financial performance metrics.
Bitcoin Risk. While Bitcoin Standard Corporations in many instances may have operations unrelated to their bitcoin holdings, they will nonetheless be subject to the risks of holding bitcoin in their corporate treasury. Bitcoin is a relatively new innovation and the market for bitcoin is subject to rapid price swings, changes and uncertainty. Bitcoin is subject to the risk of fraud, theft, manipulation or security failures, operational or other problems that impact the digital asset trading venues on which bitcoin trades. Bitcoin Standard Corporations may also be negatively impacted by regulatory enforcement actions against the digital asset trading venues upon which bitcoin trades.
Digital Asset Market and Volatility Risk. The price of bitcoin, to which each Bitcoin Standard Corporation has exposure, have historically been highly volatile. The value of such assets has been, and may continue to be, substantially dependent on speculation, such that trading and investing in these assets generally may not be based on fundamental analysis. The value of the Fund’s investments in Bitcoin Standard Corporations – and therefore the value of an investment in the Fund – could decline significantly and without warning. If you are not prepared to accept significant and unexpected changes in the value of the Fund, you should not invest in the Fund.
Asset Class Risk. Securities and other assets in the Index or in the Fund’s portfolio may underperform in comparison to the general financial markets, a particular financial market or other asset classes.
Concentration Risk. The Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund’s investments more than the market as a whole, to the extent that the Fund’s investments are concentrated in the securities and/or other assets of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector, market segment or asset class.
Emerging Markets Risk. Investments in securities issued by governments and companies operating in emerging market countries involve additional risks relating to political, economic, or regulatory conditions not associated with investments in securities and instruments issued by U.S. companies or by companies operating in other developed market countries.
New Fund Risk. The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision.
Non-Diversification Risk. As a “non-diversified” fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of the Fund Shares may be more volatile than the values of shares of more diversified funds.
Non-U.S. Securities Risk. Non-U.S. securities are subject to higher volatility than securities of domestic issuers due to possible adverse political, social or economic developments, restrictions on foreign investment or exchange of securities, capital controls, lack of liquidity, currency exchange rates, excessive taxation, government seizure of assets, the imposition of sanctions by foreign governments, different legal or accounting standards, and less government supervision and regulation of securities exchanges in foreign countries.
Small- and Mid-Capitalization Companies Risk. Small and/or mid capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than larger, more established companies as a result of several factors, including limited trading volumes, fewer products or financial resources, management inexperience and less publicly available information. Accordingly, such companies are generally subject to greater market risk than larger, more established companies.
Passive Investment Risk. The fund is passively managed and attempts to mirror the composition and performance of the Bitwise Bitcoin Standard Corporations Index. The Fund generally will not attempt to take defensive positions in declining markets.
OWNB is distributed by Foreside Fund Services, LLC, which is not affiliated with Bitwise or any of its affiliates.
1 Source: U.S. Federal Reserve: https://www.federalreserve.gov/releases/z1/20241212/html/l102.htm
View source version on businesswire.com: https://www.businesswire.com/news/home/20250311165166/en/
Contacts
Frank Taylor/Stephanie Dressler
Dukas Linden Public Relations
Bitwise@DLPR.com