American crypto asset manager Grayscale Investments has introduced a new Exchange-Traded Fund (ETF) that offers exposure to publicly traded companies that hold Bitcoin.
The new product, called Grayscale Bitcoin Adopters ETF (BCOR), will track the performance of companies adopting BTC as a treasury reserve asset.
Grayscale Boost Bitcoin to Investors
As revealed in a press release, the Fund will specifically invest in companies that comprise the Indxx Bitcoin Adopters Index. The index focuses on publicly traded companies with a market capitalization surpassing $100 million. However, Grayscale said the companies must hold at least 100 BTC in reserve to qualify for the fund.
Upon its launch, BCOR will track over 33 companies across 15 industries, diversifying global equity exposure. The holdings are weighted based on the amount of Bitcoin held and the firm’s market cap. The weight of a single company is capped at 20%. This strategy ensures that even smaller companies maintain their presence within the index.
Notably, changes in the Bitcoin strategies of corporations affect the fund, as do regulatory changes and market volatility.
The Bitcoin Adopters ETF provides an innovative way for investors to get exposure to BTC without directly holding the asset. It also represents an exciting opportunity for those who believe in Bitcoin’s long-term potential. As more companies integrate Bitcoin into their balance sheets, the price of BTC is expected to skyrocket.
Intriguingly, firms such as Bitwise and REX Shares offer a similar ETF. As featured in our recent coverage, Bitwise introduced the Bitwise Bitcoin Standard Corporations ETF (OWNB) in March. The fund is designed to track public companies that hold at least 1,000 Bitcoin on their balance sheets.
The launch of the BCOR adds to Grayscale’s other BTC ETF products, which include the Grayscale Bitcoin Trust ETF (GBTC) and Grayscale Ethereum Trust ETF (ETHE). The Grayscale Bitcoin Miners ETF (MNRS) and Grayscale Bitcoin Covered Call ETF (BTCC) are also among other BTC ETFs offered by Grayscale.
A Rising Trend of Corporate Bitcoin Treasury Adoption
The launch of the Grayscale Bitcoin Adopters ETF comes amid a rising trend of corporations adding Bitcoin as a treasury asset. Corporations are positioning even further in offering digital asset-based investing options to their customers. These companies view Bitcoin as a potential hedge against inflation and a tool for treasury diversification.
Michael Saylor’s Strategy is a pioneer in the rising Bitcoin acquisition trend by traditional firms. In a recent update, we covered that Strategy now holds 528,185 BTC after purchasing an additional 22,048 BTC. Japan’s Metaplanet is also following in Strategy’s footsteps, recently adding 162 BTC to its Bitcoin stash.
Grayscale’s renewed institutional interest in Bitcoin comes amid a price resurgence for the top coin. At press time, BTC was traded at $96,118, up 1.19% over the last 24 hours.
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