The United States Securities and Exchange Commission, or SEC, has approved the Volt Crypto Industry Revolution and Tech ETF, providing investors with easy access to companies with significant exposure to Bitcoin (BTC).
The ETF, which was approved on October 5, is intended to track so-called Bitcoin Industry Revolution Companies, which are defined as entities that either have the majority of their net assets in BTC or that generate the majority of its income from mining, borrowing or Bitcoin transactions, according to a filing with the SEC. The new ETF will trade on the NYSE Arca under the symbol BTCR.
Are the whales getting ahead of the approval of a Bitcoin futures ETF?
US securities regulators have been deliberating for years to approve their first Bitcoin ETF. On October 1, the SEC announced that it would delay its decision on four Bitcoin ETFs by 45 days, lengthening the terms of Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust, and Kryptoin Bitcoin ETF to November 21, 8 December, December 11 and December 24, respectively.
Unlike other Bitcoin ETF proposals, the new Volt Equity fund does not track Bitcoin’s price or keep the asset in custody. Instead, it seeks exposure to companies that generate a significant portion of their income from cryptocurrency-related activities.
Gary Gensler confirms that the SEC will not ban cryptocurrencies but Congress could. Therefore, the Volt product is the closest American investors have to a pure Bitcoin ETF for now.
There is speculation that the SEC is about to approve the first pure Bitcoin ETF, albeit with a slight modification. While regulators continue to consider a traditional Bitcoin ETF, a Bitcoin futures equivalent could be approved in the coming weeks, according to Bloomberg analyst Eric Balchunas.
“Yes, the SEC has kicked the approval of Bitcoin ETFs, BUT that’s for those physically backed under Law 33. Futures ETFs filed under Law ’40 (which Genz loves) are very much alive. and probably on schedule (we think there is a 75% chance of approval in October). “
The optimism surrounding the possible approval may have contributed to the impressive rise in the price of Bitcoin earlier in the week. The flagship cryptocurrency surged to $ 55,000 on Wednesday, as total market capitalization once again hit $ 1 trillion, marking the first time in roughly four months.