While the crypto world is eagerly waiting for the US Securities and Exchange Commission (SEC) to approve a Bitcoin ETF, the SEC has taken another step in that direction by approving a fund called the “Volt Bitcoin Revolution ETF”. For details of the news cryptocoin.com keep reading.
Approved Bitcoin ETF will be traded under the BTCR code
Managed by San Francisco-based Volt Equity, the fund will create a portfolio of “Bitcoin Revolution Companies” with significant cryptocurrencies on their balance sheets, allowing individual investors to invest in BTC.
Volt Equity said in its first filing with the SEC in June that 25% of the fund’s assets will consist of shares in MicroStrategy, a cybersecurity company that buys large amounts of Bitcoin. However, Volt founder Tad Park stated in an interview with Decrypt that the percentage could be slightly lower if the fund, which will be traded under the BTCR code, is listed on the New York Stock Exchange in the next few weeks.
Tad Park added that the fund will consist of shares of around 30 companies, including Tesla, Square, Coinbase and PayPal. Tad Park also said that Volt has recently decided to include Twitter, which has made Bitcoin a part of its operations, and Bitcoin mining companies such as Marathon, which keep the currency in their corporate treasury.
The Volt Equity founder stated that the Bitcoin Revolution Fund would be less volatile than pure cryptocurrency movements, as a drop in the price of Bitcoin did not have a major impact on the shares of firms like Tesla or PayPal. Tad Park said that like other ETFs, the Volt fund’s fees are modest and consist of an annual management fee of 0.85%.
Is that what the SEC is doing, preferring one child over the other?
While the SEC’s green light to the Volt fund is still far from approval of a pure Bitcoin ETF, it does indicate that the institution’s distinctive hardline against BTC has softened somewhat. On the subject, Tad Park makes the following assessment:
A year ago such an ETF would not have been possible. Hopefully there will be a crack in this dam.
Meanwhile, other firms such as crypto giant Grayscale, which have applied for Bitcoin ETFs for years, continue to wait impatiently. After SEC Chairman Gary Gensler pointed out in August that the institution was ready to approve such an ETF, but consisted only of Bitcoin futures, Grayscale CEO Michael Sonnenshein said such a move would be akin to “preferring one child over another.”
In the past, the SEC has rejected ETF applications due to concerns that the underlying market for Bitcoin could be manipulated. According to experts, this concern cannot be alleviated by only approving ETFs linked to BTC futures, as the price of futures contracts depends on the price of the underlying asset. So one theory for Gary Gensler’s signal that the SEC would approve a BTC futures ETF before a spot market ETF could be that the legacy product type is regulated under a different law that offers additional investor protections.
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