Institutional adoption of Bitcoin is reaching new heights, with recent filings for Bitcoin-focused exchange-traded funds (ETFs) reflecting growing interest, including one designed to invest in MicroStrategy’s convertible securities.

The central narrative in the cryptocurrency market for 2024 has been the rising involvement of institutional investors. From the approval of spot Bitcoin (BTC) ETFs in the U.S. to an increasing number of corporations integrating Bitcoin into their treasuries, the digital asset is becoming a cornerstone of mainstream financial strategies.

Bitcoin has climbed nearly 130% this year, frequently reaching record highs and currently hovering near the key $100,000 psychological level. Spot Bitcoin ETFs, approved earlier this year, have recorded net inflows exceeding $36 billion and now collectively hold over 1 million BTC.

The trend of companies adding Bitcoin to their treasuries, pioneered by MicroStrategy (MSTR) in 2020, continues to gain traction. Most recently, KULR Technology (KULR), a Texas-based energy storage solutions provider, purchased 217.18 BTC valued at $21 million and plans to allocate up to 90% of its surplus cash reserves to Bitcoin.

Bitwise Asset Management, known for its existing spot Bitcoin and Ether ETFs, has proposed a new ETF called the Bitwise Bitcoin Standard Corporations ETF. This fund aims to track publicly traded companies holding at least 1,000 BTC in their reserves. Eligibility requirements include a minimum market capitalization of $100 million, daily average liquidity of $1 million, and a public free float below 10%, as stated in the December 26 filing.

Strive Asset Management, co-founded by political figure Vivek Ramaswamy, has also joined the Bitcoin ETF market with its Bitcoin Bond ETF. This actively managed fund seeks exposure to Bitcoin through derivative instruments, including MicroStrategy’s convertible bonds. These bonds have delivered exceptional performance, with the 0% coupon bond maturing in 2027 currently trading at 150% above par and outperforming Bitcoin itself since issuance.

“Strive has consistently addressed the systemic risks posed by fiat currency instability, inflation, and global geopolitical uncertainty,” said Strive CEO Matt Cole in a statement to CoinDesk. “We firmly believe that Bitcoin remains one of the most reliable long-term hedges against these challenges.”

Cole further emphasized that Strive’s Bitcoin Bond ETF aims to broaden investor access to Bitcoin-backed bonds. “These corporate-issued bonds, designed to acquire Bitcoin, offer compelling risk-return opportunities but remain inaccessible to most retail investors. Our ETF aims to change that dynamic,” he concluded.

As institutional interest in Bitcoin accelerates, both direct holdings and innovative financial instruments are setting the stage for broader market participation and deeper integration of Bitcoin into global finance in 2024.