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The United States Securities and Exchange Commission, or SEC, has approved the Volt Crypto Industry Revolution and Tech ETF, giving investors easy access to companies with high 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 hold the majority of their net assets in BTC or derive the majority of their income from Bitcoin mining. , loan or transaction, according to an SEC file. Eighty percent of the fund’s holdings will be allocated to these games, the prospectus says. The new ETF will appear as a listing on the New York Arca Stock Exchange under the ticker symbol BTCR.
U.S. securities regulators have been deliberating for years on whether to approve their first Bitcoin ETF. On October 1, the SEC announced that it would delay its decision on four Bitcoin ETFs for 45 days, pushing the deadlines of the Global X Bitcoin Trust, the Valkyrie XBTO Bitcoin Futures Fund, the WisdomTree Bitcoin Trust and the Kryptoin Bitcoin ETF to November 21. . December 8, December 11 and December 24, respectively.
Unlike other Bitcoin ETF proposals, the newly approved Volt Equity fund does not track the price of Bitcoin and does not hold the asset. Rather, it seeks exposure to companies that generate a significant portion of their business from Bitcoin-related activities. As such, the Volt product is currently the closest US investors have to an outright Bitcoin ETF.
Related: Price spike: are whales leading the approval of a Bitcoin futures ETF?
Speculation is rife that the SEC is set to approve its first pure-play Bitcoin ETF, albeit with a slight modification. As regulators continue to reflect on a traditional Bitcoin ETF, a Bitcoin futures equivalent could be adopted in the coming weeks, according to to Bloomberg analyst Eric Balchunas.
Yes, the SEC kicked off Bitcoin ETF approval BUT this is for those who are physically supported under the ’33 law. Law 40 term ETFs (which Genz loves) are alive and well and probably on schedule (we think a 75% chance were approved in October). Here are our chances: https://t.co/cSZ8aDsITl pic.twitter.com/DUEvRANvO7
– Eric Balchunas (@EricBalchunas) October 2, 2021
The optimism surrounding the potential approval may have helped Bitcoin’s price rally earlier in the week. The flagship digital currency surged to $ 55,000 on Wednesday as the total market cap fell back to $ 1,000 billion – marking the first of those milestones in about four months.
The SEC’s deliberations on a Bitcoin ETF have taken significantly longer than its counterparts in Canada, which have already granted approvals on three exchange-traded funds. The Purpose Bitcoin ETF, launched in February, currently has $ 1.51 billion in assets under management, according to data from Bybt.
The Evolve Bitcoin ETF and CI Galaxy Bitcoin ETF were launched in February and March respectively.
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