- Revenue from bitcoin-related activities like mining, lending, or manufacturing mining equipment, has been approved by the SEC
- With options positions, exposure to bitcoin can be obtained without necessarily holding the coin
- Bitcoin ETFs are now available in Canada.
At least for now, a new exchange-traded fund may be the closest investors can get to a U.S. bitcoin ETF.
Volt Equity’s ETF, which aims to track companies that hold the majority of their net worth in bitcoin o derive most of their profit or income from bitcoin related activities such as mining, lending or production mining equipment, has been approved by the US Securities and Exchange Commission, according to Tad Pak, the fund’s CEO.
He calls them a bitcoin revolution company and the actively managed fund is considering MicroStrategy, Marathon Digital Holdings, and Bitfarms, among others.
Listing the company soon
On October 5, the Volt Crypto Industry Revolution and Technology ETF was approved, and it will trade under the ticker BTCR. Pak said he plans to list his company on the New York Stock Exchange within the next three weeks.
He is a strong supporter of bitcoin and was really excited about the prospect of creating an ETF to profit from the next bitcoin revolution. With options positions, exposure to bitcoin can be obtained without necessarily owning the currency.
Because the SEC, under Chair Gary Gensler, has been delaying the approval of bitcoin ETFs – with over two dozen in limbo – due to concerns about market manipulation, this roundabout investing method is necessary. Although Gensler recently stated that he is more open to a bitcoin futures ETF, the United States has yet to authorise one. Bitcoin ETFs, on the other hand, are now available in Canada.
As a result, the Volt ETF will not directly own bitcoin. Instead, it plans to invest at least 80% of its net assets in bitcoin revolution firms, options, and exchange-traded funds (ETFs) that track those companies. The remainder will be invested in general stock markets in order to reduce the risk of the portfolio.
The StocktoFlow model, which compares the current stock of bitcoin with the flow of new bitcoin generated that year, will also be considered by the ETF. According to Pak, this is the first bitcoin-specific ETF, as opposed to others that invest in a wider variety of digital assets.
Exchange traded fund
He said that it appears like it’s not a huge issue, but no one has ever done that before.
Volt Equity, based in San Francisco, has established its fifth exchange-traded fund. Pak, on the other hand, said it was by far the most difficult, citing frequent back-and-forth with the SEC.
Although the cause of the multiple delays is unknown, Pak, a retail technology investor, speculated that this was due to the fund’s original name, Volt Bitcoin Revolution ETF. It was quite difficult to do it, he said, but we are very happy that they finally cleared it.
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