The dominant crypto narrative for 2024 has been institutional adoption. From the US approval of spot bitcoin (BTC) exchange-traded funds to the growing number of companies pledging to purchase the largest cryptocurrency for their treasuries, cryptocurrencies have entered the mainstream conversation more than ever.
Bitcoin is up almost 130% this year, breaking all-time highs on several occasions. It is currently close to the psychological threshold of $100,000. ETFs approved in January have seen net inflows of $36 billion and accumulated more than 1 million BTC.
Additionally, the number of publicly traded companies saying they are adding bitcoin to their corporate treasuries is accelerating. The trend, which began with MicroStrategy (MSTR) in 2020, recently attracted KULR Technology (KULR), a manufacturer of energy storage products for the space and defense industries. The Houston, Texas-based company said it purchased 217.18 BTC for $21 million and is allocating up to 90% of the surplus cash to BTC.
Now Bitwise Asset Management, which already has bitcoin and ether spot ETFs, has filed for an exchange-traded fund to track the shares of companies that hold at least 1,000 BTC in treasury. Other requirements for the fund, called Bitwise Bitcoin Standard Corporations ETF, are a market capitalization of at least $100 million, minimum average daily liquidity of at least $1 million and a public free float of less than 10%, according to the report of December 26. presentation.
Strive Asset Management, co-founded by Vivek Ramaswamy, a politician in US President-elect Donald Trump’s administration, made a second filing on Thursday. The Bitcoin Bond ETF seeks exposure through derivative instruments such as MicroStrategy convertible securities in an actively managed ETF. The bonuses have been a great success. The 0% coupon bond due 2027 is priced 150% above par and has outperformed bitcoin since its inception.
“Since our inception, Strive has flagged the long-term investment risks caused by the global fiat debt crisis, inflation, and geopolitical tensions,” Strive CEO Matt Cole told CoinDesk. “We firmly believe that there is no better long-term investment to protect against these risks than careful exposure to bitcoin.”
“The first of many planned bitcoin solutions by Strive will democratize access to bitcoin bonds, which are bonds issued by corporations to purchase bitcoins. We believe these bonds provide attractive risk-return exposure to bitcoin, however, they are not available for be bought by the majority of investors.” he added.
