Volt Equity Receives SEC Approval For ETF With Exposure To Bitcoin Firms
The United States Securities and Exchange Commission (SEC) issued approval for Volt Crypto Industry Revolution and Tech ETF, through which investors have easy access to companies with significant exposure to Bitcoin (BTC).
The SEC approved on Tuesday an exchange-traded fund (ETF), intended to track so-called “Bitcoin Industry Revolution Companies.” According to the SEC filing, these companies hold a majority of their net assets in BTC or derive a majority of their earnings from Bitcoin mining, lending or transacting. The prospectus says that 80 percent of the fund’s holdings will be allocated to such companies. 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 November 21, December 8, December 11 and December 24, respectively.
The newly approved Volt Equity fund is different from other proposals for a physically-backed Bitcoin ETF. It doesn’t track the price of Bitcoin or hold the asset in custody. Instead, 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, as of now.
There has been a lot of speculation that the SEC is on the verge of approving its first pure-play Bitcoin ETF, but with a slight modification. As regulators continue to mull a spot Bitcoin ETF, a Bitcoin futures equivalent could be passed in the coming weeks, Bloomberg analyst Eric Balchunas tweeted.
Yes, the SEC has kicked can on bitcoin ETF approval BUT that is for the physically-backed ones under '33 Act. The futures ETFs filed under the '40 Act (which Genz loves) are very much alive and likely on schedule (we think 75% chance approved in Oct). Here's our odds: https://t.co/cSZ8aDsITlpic.twitter.com/DUEvRANvO7
Now might be an optimal time for a potential approval, as Bitcoin price rallied earlier in the week. The flagship digital currency jumped to $55,000 on Wednesday as the asset’s total market capitalization returned to $1 trillion — marking the first such milestones since May this year.
The SEC’s consideration 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.
