The Volt Crypto Industry Revolution and Tech ETF has been approved by the US Securities and Exchange Commission, giving investors convenient access to companies with strong Bitcoin exposure (BTC).
According to an SEC filing, the exchange-traded fund (ETF) would follow so-called “Bitcoin Industry Revolution Companies,” which are defined as entities that hold a majority of their net assets in BTC or get a majority of their earnings from Bitcoin mining, lending, or transacting.
According to the prospectus, such companies will account for 80% of the fund’s interests. Under the ticker symbol BTCR, the new ETF will be listed on the New York Stock Exchange Arca.
For years, US securities regulators have debated whether to authorize the first Bitcoin ETF. The SEC announced last Friday that it would postpone its decision on four Bitcoin ETFs by 45 days, moving the deadlines for 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, unlike prior plans for a physically-backed Bitcoin ETF, does not track the price of Bitcoin or keep the item in custody.
it looks for companies that make a sizable amount of their revenue from Bitcoin-related activity. As a result, for the time being, the Volt product is the closest thing US investors have to a pure-play Bitcoin ETF.
The SEC is rumoured to be on the verge of approving its first pure-play Bitcoin ETF, but with some modifications. According to Bloomberg analyst Eric Balchunas, a Bitcoin futures counterpart could be passed in the next weeks as authorities consider a spot Bitcoin ETF.
Bitcoin’s massive price surge earlier this week may have been fueled by optimism surrounding the prospective acceptance. On Wednesday, the asset’s entire market value surpassed $1 trillion for the first time in nearly four months, pushing the flagship digital currency to $55,000.
The SEC’s deliberations on a Bitcoin ETF have lasted far longer than those of its Canadian counterparts, who have previously approved three exchange-traded funds. According to Bybt data, the Purpose Bitcoin ETF, which debuted in February, now has $1.51 billion in assets under management.
In February and March, the Evolve Bitcoin ETF and the CI Galaxy Bitcoin ETF, respectively, were launched.