Some of OWNB’s holdings include Strategy and Bitcoin mining companies. Corporate Bitcoin treasuries surged past $54 billion, fueling even more institutional interest. Meanwhile, Wall Street is deepening its crypto involvement after Cantor Fitzgerald announced the launch of a $2 billion digital asset financing business. Despite Bitcoin’s recent price drop, analysts see it as a healthy correction.
Bitcoin Treasuries Drive New Wave of ETFs
Bitwise introduced an exchange-traded fund (ETF) that focuses on companies holding large Bitcoin reserves. The Bitwise Bitcoin Standard Corporations ETF (OWNB) aims to follow the Bitwise Bitcoin Standard Corporations Index, which consists of companies that maintain at least 1,000 Bitcoin in their corporate reserves. This ETF offers investors an opportunity to get indirect exposure to Bitcoin by investing in firms that consider the cryptocurrency a strategic asset.
According to Matt Hougan, Bitwise’s chief investment officer, corporations holding Bitcoin do so for the same reasons as individual investors. They see Bitcoin as a liquid, scarce, and government-independent store of value.
(Source: Bitwise)
Currently, the ETF’s primary holdings include Michael Saylor’s Strategy (MSTR), Bitcoin mining firms like MARA Holdings (MARA), CleanSpark (CLSK), and Riot Platforms (RIOT), as well as companies like gaming firm Boyaa Interactive and investment manager Galaxy Digital (GLXY). Bitwise structured the index to be weighted based on Bitcoin holdings, capping the largest single holding at 20%.
OWNB top holdings (Source: Bitwise)
Corporate Bitcoin treasuries have surged in 2024, driven by the rising price of Bitcoin. Shares of Strategy climbed by over 350%, which inspired more companies to accumulate Bitcoin. Data from BitcoinTreasuries.NET indicates that corporate Bitcoin holdings have surpassed $54 billion, with Strategy maintaining the largest treasury of over $41 billion. Even the United States government formed a strategic Bitcoin reserve consisting of seized Bitcoin.
Other asset managers are also introducing similar investment products, and are expanding the range of options available to investors. In December, Strive, an asset management firm founded by former US presidential candidate Vivek Ramaswamy, seeked regulatory approval for an ETF that would invest in convertible bonds issued by companies like Strategy. These so-called “Bitcoin Bonds” are structured as convertible securities that direct proceeds toward Bitcoin purchases.
Meanwhile, asset manager REX Shares also announced plans to launch its own Bitcoin corporate treasury ETF. As interest in Bitcoin-backed financial instruments continues to grow, more firms are likely to follow suit.
Wall Street Moves Deeper Into Crypto
Meanwhile, Cantor Fitzgerald announced the launch of its digital asset financing business, and selected Anchorage Digital and Copper as its Bitcoin custodians and collateral managers. The investment banking firm is introducing this service with an initial capital of $2 billion, to provide institutional investors with the ability to borrow against their crypto holdings. By leveraging the expertise of Anchorage Digital, the only federally chartered digital asset bank in the United States, and Copper, a Barclays-backed crypto custodian, Cantor Fitzgerald is certainly strengthening its position in the digital asset market.
According to Copper CEO Amar Kuchinad, the initiative will offer institutional investors a new way to diversify their portfolios into digital assets, responding to the rising demand for sophisticated Bitcoin financing solutions. Cantor Fitzgerald first revealed its plans for a Bitcoin financing business in July last year, to provide leverage to investors holding Bitcoin. Since then, the company expanded its digital asset footprint by acquiring a 5% stake in stablecoin issuer Tether. The firm currently manages more than $5 billion in assets, based on the latest regulatory filings.
Institutional demand for Bitcoin is still very strong despite the ongoing market fluctuations. The successful introduction of US spot Bitcoin ETFs over a year ago proved the scale of institutional interest in the asset. By February, Bitcoin exchange reserves fell to more than two-year lows because of persistent buying pressure from institutions. Even amid recent market volatility caused by geopolitical uncertainties and recession fears, institutional Bitcoin investments still expand, with more Wall Street firms entering the custody space.
Citi and State Street are among the financial giants planning to offer crypto custody services by 2026, according to a report from Forbes. Meanwhile, Deutsche Boerse is preparing to launch Bitcoin and Ethereum custody services next month, which was revealed by Bloomberg on March 11. For now, the institutional landscape for Bitcoin continues to evolve.
Analysts Say Bitcoin Drop Is Healthy
Despite Bitcoin’s price struggles, there is still hope for institutions and individuals holding BTC. Bitcoin’s recent decline raised some concerns among investors, but analysts suggest that a retracement to $70,000 may actually be a natural part of the ongoing bull market.
Bitcoin’s price action over the past week (Source: CoinMarketCap)
Over the past week, Bitcoin’s price fell by more than 6% as disappointment spread over the lack of direct federal Bitcoin investments in President Donald Trump’s recent executive order. The order outlined a plan to create a Bitcoin reserve using cryptocurrency that was forfeited in government criminal cases, but it did not include immediate federal purchases of Bitcoin, leading to a dip in investor sentiment.
Despite the decline, the broader market is still in a macro correction, according to Aurelie Barthere, principal research analyst at Nansen. Most cryptocurrencies have broken key support levels, making it more difficult to pinpoint exact price targets. The analyst pointed out that Bitcoin’s next level of support is likely between $71,000 and $72,000, which aligns with its pre-election trading range. She believes that this correction is occurring within a broader bull market, as both stocks and cryptocurrencies are still adjusting to ongoing economic uncertainties, including tariff risks and recession fears.
Other analysts, including Iliya Kalchev from Nexo, agree with this. According to Nexo, Bitcoin could see further declines toward the low $70,000 range before establishing a stronger foundation for future gains. Arthur Hayes, co-founder of BitMEX, reassured investors that a retracement to the $70,000 level will be within the normal range for a bull market. In a March 11 post, Hayes pointed out that a 36% correction from an all-time high of $110,000 will still be typical for a bullish cycle.
Hayes also pointed to the potential impact of global monetary policies, and suggested that central banks, including the Federal Reserve, the People’s Bank of China, the European Central Bank, and the Bank of Japan, may turn to quantitative easing. Such policies, which involve increasing the money supply through asset purchases, have historically been favorable for Bitcoin. During the last period of quantitative easing, which began in March of 2020 in response to the COVID-19 pandemic, Bitcoin surged by over 1,050% from $6,000 to $69,000.
Looking ahead, analysts are still optimistic for Bitcoin’s price trajectory into late 2025. Predictions range from $160,000 to above $180,000.
This article was originally Posted on Coinpaper.com
