Grayscale, the leading cryptocurrency asset manager, has launched a new exchange-traded fund (ETF) that offers exposure to publicly traded companies that hold Bitcoin, the flagship cryptocurrency, as part of their reserves.
The Bitcoin Adopters ETF (BCOR) covers global companies from developed or emerging markets across various industries, meaning that it is sector-agnostic.
The aim of the investment product is to give investors an opportunity to gain indirect exposure to Bitcoin via equity stakes in public companies.
In order to qualify for being included in the ETF, a company is supposed to own at least 100 coins in its corporate treasury.
The index is comprised of primary and secondary companies. The first type of companies does not earn more than 50% of their revenue from Bitcoin mining, while the second type does. Secondary companies, such as ASIC machines, also provide mining infrastructure.
The holdings are weighted based on the amount of Bitcoin held and market cap. The weight of a single company is capped at 20%. In such a way, it is possible to ensure that even smaller companies will maintain their presence within the index.
The fund can obviously be impacted by changes in the Bitcoin strategies of the corporations, as well as regulatory changes and market volatility.
Similar ETFs are also offered by such firms as Bitwise and REX Shares.
Some other ETF products offered by Grayscale include Grayscale Bitcoin Trust ETF (GBTC), Grayscale Ethereum Trust ETF (ETHE), Grayscale Bitcoin Miners ETF (MNRS), and Grayscale Bitcoin Covered Call ETF (BTCC).
Vladislav Sopov
Dan Burgin