U.S. SEC Greenlights New ETF To Track Bitcoin 'Revolution' Companies

The U.S. Securities and Exchange Commission (SEC) has greenlighted a new exchange-traded fund (ETF) applied for by Volt Equity, the investment solutions firm behind Volt Crypto Industry Revolution and Tech ETF. The fund will trade under the ticker BTCR.

The new ETF will provide investors with the option to invest in companies such as MicroStrategy, Marathon Digital Holdings, and Bitfarms, among others which the strategic fund is also exploring given how these have direct exposure to Bitcoin.

"I'm a strong believer in bitcoin and was 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." shared Volt Equity CEO Tad Pak.

According to the Form N-1A SEC filing, the ETF included organizations categorized as “Bitcoin Revolution Companies” or, by definition, firms that have allocated a significant portion of their portfolio in the alpha cryptocurrency, or, by extension, are actively involved in the cryptocurrency through either infrastructural or technological development, or active mining.

“Blockchain technology may be used to support a vast array of business applications in many different industries and markets, and the extent of its versatility has not yet been fully explored. As a result, the Fund may include equity securities of operating companies with investments in bitcoin and bitcoin’s blockchain technology that focus on or have exposure to a wide variety of industries and countries, including emerging markets.” the filing described.

The Volt ETF will not directly invest in Bitcoin, though, given how the SEC has held off the approval of direct Bitcoin ETFs, a positioning that has been stoked by fears of market manipulation. SEC Chair Gary Gensler has recently noted that he favors the idea Bitcoin futures ETF, although the Commission has yet to approve one.

The newly approved Volt ETF, on the other hand, will place at least 80% of net assets in the aforementioned category of “Bitcoin Revolution Companies” (BRCs), option, as well as ETFs with exposure to the applicable companies. The rest of the options are expected to gain broad equity market exposure, in a bid to offset risks.

Volt Equity initially applied for the Volt Bitcoin Revolution ETF’s approval from the SEC back in June this year, and after roughly four months of review, it was finally given the go signal. The new fund is the fifth to be launched by Volt Equity, and is by far the largest it has done so far.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.