The U.S. Securities and Exchange Commission (SEC) has greenlighted an ETF that will provide exposure to investors in publicly listed companies holding assets in Bitcoin.
A prospectus filed with SEC on October 1 shows that the new exchange-traded fund, which is called Volt Crypto Industry Revolution and Tech ETF, will follow the performance of public companies that either make most of their profit by building mining equipment or mining Bitcoin or have most of their net assets in the flagship crypto.
Two examples of each are Marathon Digital Holdings and MicroStrategy.
Fund to provide capital appreciation
Volt Crypto Industry Revolution and Tech ETF aims to provide capital appreciation. According to the prospectus, the fund’s annual operating expenses, costs paid each year as a percentage of investment value, are limited to management fees of just 0.85%. There are no other fees.
A minimum of four-fifths of the fund’s net assets will be invested in cryptocurrency stocks. The rest will offset risk by investment in more traditional stocks. The fund won’t hold any crypto directly.
SEC delays decision on Valkyrie, GlobalX
A few days ago, the SEC delayed its decision on a number of Bitcoin ETFs, including GlobalX and Valkyrie. At the same time, Bitcoin ETF applications are pouring in. Popular crypto exchange BlockFi filed for an ETF for Bitcoin futures on Friday, October 8. With theirs, there are now almost 15 active pending applications.
Approval of true Bitcoin ETF by end of month?
Hopeful members of the crypto community feel that approval of a Bitcoin ETF by the end of the month is not out of the question. SEC Chair Gary Gensler does not seem against the suggestions put across by Valkyrie and BlockFi.
Admittedly, the crypto community wasn’t holding its breath for a Bitcoin ETF like Volt, but it’s a step in the right direction. After all, it’s the first ETF of its kind to receive regulatory approval. Insider’s article about it was titled, “The SEC just approved the closest thing to a US bitcoin ETF you can buy, for now.” Volt CEO Tad Pak related how hard it had been to obtain approval in an interview:
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. It was very difficult to get this through, but we’re really glad that they finally approved it.
