The U.S. Securities and Exchange Commission (SEC) announced today that it has approved a fund called the “Volt Bitcoin Revolution ETF”. This news was received very positively in the cryptocurrency world.
The approved Volt Bitcoin Revolution ETF includes notable companies such as Tesla and Twitter in its portfolio. Managed by San Francisco-based company Volt Equity, the ETF holds a significant amount of cryptocurrencies in its account. The company will create a portfolio with this ETF, giving its individual investors the opportunity to buy and sell Bitcoin. The company’s portfolio will currently include around 30 companies, including key companies such as Tesla, Twitter and Paypal.
Of course, the SEC did not approve a purely Bitcoin ETF by acting politically in this decision, but it took another important step on this path.
The company first filed its ETF application in June and stated that 25% of the fund assets will be from shares in MicroStrategy, a cybersecurity company that buys large amounts of Bitcoin. However, Volt founder Tad Park added in an interview with Decrypt that the percentage could be slightly lower if the fund, which will be traded under the BTCR ticker symbol, is listed on the New York Stock Exchange in the next few weeks.
Park added that the fund will consist of shares of about 30 companies, including Tesla, Square, Coinbase and PayPal.
Park noted that the Bitcoin Revolution Fund would be less volatile than pure crypto games, as a drop in the price of Bitcoin did not have a major impact on the shares of firms like Tesla or PayPal. Like other ETFs, the Volt fund’s fees will be affordable and the fund will have an annual management fee of 0.85%.
“Such an ETF approval was not possible a year ago,” Park said.
SEC Prefers One Child Over Another!
On the other hand, the SEC continues to hold many companies, such as the crypto giant Grayscale, which applied for an ETF a long time ago. After SEC Chairman Gary Gensler signaled in August that he was ready to approve such an ETF but that it 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 had rejected Bitcoin ETF applications due to concerns that the market could be manipulated for Bitcoin.