SEC approves Volt Equity ETF providing exposure to Bitcoin-centric companies

Regulators have green-lighted a new exchange-traded fund that provides exposure to “Bitcoin Industry Revolution Companies.”

The United States Securities and Exchange Commission, or SEC, has approved the Volt Crypto Industry Revolution and Tech ETF, providing investors with easy access to companies with significant exposure to Bitcoin (BTC).

The exchange-traded fund, which was approved on Tuesday, is intended to track so-called “Bitcoin Industry Revolution Companies,” which are defined as entities that hold a majority of their net assets in BTC or derive a majority of their earnings from Bitcoin mining, lending or transacting, according to an SEC filing. Eighty percent of the fund’s holdings will be allocated to such companies, the prospectus states. The new ETF will appear as a New York Stock Exchange Arca listing under the ticker symbol BTCR.

U.S. securities regulators have been deliberating for years whether to approve their first Bitcoin ETF. Last Friday, the SEC announced it would delay its decision on four Bitcoin ETFs by 45 days, pushing back the timelines on the Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust and Kryptoin Bitcoin ETF to Nov. 21, Dec. 8, Dec. 11 and Dec. 24, respectively.

Unlike other proposals for a physically-backed Bitcoin ETF, the newly approved Volt Equity fund doesn’t track the price of Bitcoin or hold the asset in custody. Rather, it seeks exposure to companies that generate a significant portion of their business from Bitcoin-related activities. As such, the Volt product is the closest thing U.S. investors have to a pure-play Bitcoin ETF for now.

Related: Price spike: Are whales front-running the approval of a Bitcoin futures ETF?

Speculation is rampant that the SEC is on the verge of approving its first pure-play Bitcoin ETF, albeit with a slight modification. As regulators continue to mull a spot Bitcoin ETF, a Bitcoin futures equivalent could be passed in the coming weeks, according to Bloomberg analyst Eric Balchunas.

Optimism surrounding the potential approval may have contributed to Bitcoin’s momentous price rally earlier in the week. The flagship digital currency surged to $55,000 on Wednesday as the asset’s total market capitalization returned to $1 trillion — marking the first such milestones in roughly four months.

The SEC’s deliberations about a Bitcoin ETF have taken much longer than its counterparts in Canada, which have already granted approvals for three exchange-traded funds. The Purpose Bitcoin ETF, which launched in February, currently has $1.51 billion in assets under management, according to Bybt data.

The Evolve Bitcoin ETF and CI Galaxy Bitcoin ETF launched in February and March, respectively.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Ethereum Supply Shock Grows As Reserves Decrease, ETH 2.0 Contract Increases

The Ethereum supply shock has been growing as exchange reserves continue to decrease and value staked in ETH 2.0 contract rises. Ethereum Supply Shock: Exchange Reserves Go On Decreasing While ETH 2.0 Staking Contract Grows In Value As pointed out by a CryptoQuant post, ETH exchange reserves have been decreasing while the coins locked in

Uncertainty in XRP Price Action Could Be a Negative Signal!

Despite the ups and downs, XRP has a relatively higher position and ranks among the crypto world leaders. It is a first-of-its-kind cryptocurrency and has offered tremendous value to investors in its popularity and real-life use cases. XRP currently holds the 6th position in market capitalization with a total circulating asset of USD 50.94 billion.

Australian Creative Agency Accepts Cryptocurrency

Born Bred, the influencer marketing and creative agency of New Zealand and Australia, has decided to accept cryptocurrency as payment for its services. According to the latest announcement, Born Bred is ready to accept almost all major cryptocurrencies as modes of payment. The agency will now allow transactions in Bitcoin, Ethereum, and Ripple on its

Chingari Announces Its NFT Plan with $GARI Token

In a significant development for the NFT domain, the Chingari short video platform has announced its first token called $GARI. The organization is on the way to launching a marketplace for NFTs. Prominent Bollywood personalities Salman Khan and Vaani Kapoor were present on the occasion.  The organization has recently concluded the funding round in which