The momentum behind Bitcoin’s institutional adoption continues to build, with several recent filings for Bitcoin-focused exchange-traded funds (ETFs), including one targeting MicroStrategy’s convertible securities.
Institutional interest has become the defining narrative for Bitcoin in 2024. From the U.S. approval of spot Bitcoin (BTC) ETFs to an increasing number of corporations adopting Bitcoin as a treasury asset, the largest cryptocurrency is securing its place in mainstream finance.
Bitcoin has surged nearly 130% this year, repeatedly reaching record highs and currently trading close to the symbolic $100,000 mark. The spot Bitcoin ETFs approved earlier this year have attracted over $36 billion in net inflows and now collectively hold more than 1 million BTC.
The trend of publicly traded companies adding Bitcoin to their balance sheets, first initiated by MicroStrategy (MSTR) in 2020, continues to gain traction. Recently, Houston-based energy storage firm KULR Technology (KULR) acquired 217.18 BTC worth $21 million, with plans to allocate up to 90% of its excess cash reserves to Bitcoin.
Bitwise Asset Management, already managing spot Bitcoin and Ether ETFs, has now proposed the Bitwise Bitcoin Standard Corporations ETF. This fund will focus on publicly listed companies holding at least 1,000 BTC in their reserves. Eligibility requirements include a minimum market capitalization of $100 million, average daily liquidity of at least $1 million, and a public free float of less than 10%, according to the December 26 filing.
Strive Asset Management, co-founded by political figure Vivek Ramaswamy, has also filed for its Bitcoin Bond ETF. This actively managed fund seeks exposure to Bitcoin through derivative instruments, including MicroStrategy’s convertible bonds. These bonds have delivered strong returns, with the 0% coupon bond maturing in 2027 currently trading at 150% above par and outperforming Bitcoin since issuance.
“At Strive, we’ve consistently highlighted the risks posed by fiat currency devaluation, inflation, and rising geopolitical uncertainty,” said Strive CEO Matt Cole in a statement to CoinDesk. “We firmly believe that Bitcoin remains one of the best long-term hedges against these systemic threats.”
Cole also emphasized the ETF’s role in expanding investor access to Bitcoin-backed bonds. “These corporate-issued bonds, designed to purchase Bitcoin, offer a compelling investment opportunity but are often inaccessible to everyday investors. Our ETF aims to bridge that gap,” he added.
With institutional demand for Bitcoin continuing to accelerate, both direct ownership and innovative financial products are driving broader adoption and solidifying Bitcoin’s role in global financial markets in 2024.
