In Brief:
- The US SEC has approved Volt Equity’s ETF
- The ETF will give exposure to company stocks with significant exposure to bitcoin
- The ETF will be listed on the New York Stock Exchange under the ticker BTCR.
The US Securities and Exchange Commission (SEC) has approved Volt Equity’s ETF. The ETF will give exposure to company stocks with significant exposure to bitcoin.
According to SEC filing, it tracks companies that hold a majority of their net assets in bitcoins or derive a majority of their profit or revenue from bitcoin-related activities like mining, lending, etc.
Volt Crypto Industry Revolution and Tech ETF has been approved and will be listed on the New York Stock Exchange under the ticker BTCR.
Tad Pak, CEO of the fund said that these “bitcoin revolution companies,” and is eyeing MicroStrategy, Marathon Digital Holdings, and Bitfarms, among others, for the actively managed fund.
He said, “I’m a strong believer in bitcoin and was really excited about launching an ETF that could take advantage of the coming bitcoin revolution. We can get exposure to bitcoin without necessarily holding the coin, especially with options positions.”
The ETF will also look at indicators such as the Stock-to-Flow model, which measures the current stock of bitcoin against the number of bitcoins mined that year.
Also Read: Invesco Launches Two Crypto ETFs with Galaxy Digital
This ETF will not directly invest in bitcoin. It will instead focus on investing at least 80% of its assets in bitcoin revolution companies, options, and ETFs that are exposed to these companies. The remainder will cover the risk of the portfolio with broad equities.
Pak said this is the first ETF that is bitcoin-focused, compared to others that invest in a broader range of digital assets. The fund is the fifth ETF that San Francisco-based Volt Equity has launched.
