The Volt Crypto Industry Revolution and Tech ETF have been approved by the United States Securities and Exchange Commission (SEC). This allows investors easy access to companies that are heavily exposed to Bitcoin (BTC) and provides easy access for them to make informed decisions.
The Oct. 5 approval of the ETF is to track so-called Bitcoin Industry Revolution Companies. These entities are entities that have a majority or all of their net assets in Bitcoin or derive their majority of their earnings via Bitcoin mining, lending, or transacting. According to an SEC filing, According to the prospectus, eighty percent of the fund’s assets will be dedicated to such plays. The ETF will be listed on the New York Stock Exchange Arca under the ticker symbol BTCR.
The U.S. Securities regulators have been deliberating over the years about whether to approve their first Bitcoin ETF. The SEC announced on Oct. 1 that it would delay its decision regarding four Bitcoin ETFs for 45 days. This will push back the timelines for the Global X Bitcoin Trust (Valkyrie XBTO Bitcoin Futures Fund), WisdomTree Bitcoin Trust (Kryptoin Bitcoin Trust) and WisdomTree Bitcoin Trust (Nov. 21, Dec. 8 and Dec. 11, respectively).
Volt Equity, unlike other Bitcoin ETFs, doesn’t track Bitcoin’s price or keep the asset in custody. It seeks to expose companies that make a substantial portion of their revenue from Bitcoin-related activities. The Volt product is therefore the closest U.S. investment to a pure-play Bitcoin ETF.
Related: Price spike: Are whales leading the approval of a Bitcoin futures exchange traded fund (ETF)?
There is speculation that the SEC may approve its first pure-play Bitcoin ETF. However, this is subject to some modifications. According to Eric Balchunas, Bloomberg analyst, a Bitcoin futures counterpart could be approved by regulators as they continue to consider a traditional Bitcoin ETF.
The SEC has approved bitcoin ETF approval, but only for those that are physically backed under the ’33 Act. Genz loves the futures ETFs that were filed under the ’40 Act, and they are still alive and well. We think 75% of them will be approved in October. Here’s our odds: https://t.co/cSZ8aDsITl pic.twitter.com/DUEvRANvO7
— Eric Balchunas (@EricBalchunas) October 2, 2021
Bitcoin’s dramatic price rise earlier this week may have been due to optimism surrounding its approval. As the market capitalization rose to $1 trillion, the flagship digital currency soared to $55,000 Wednesday — the first milestone in nearly four months.
Although the SEC has already approved three exchange-traded funds, its deliberations on a Bitcoin ETF took longer than those in Canada. According to Bybt data, the Purpose Bitcoin Exchange Trade Fund, launched in February and currently manages $1.51 billion.
The Evolve Bitcoin ETF was launched in February, while the CI Galaxy Bitcoin ETF was launched in March.