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An exchange-traded fund (ETF) that will provide investors with exposure to publicly traded companies that own bitcoin has been approved by the United States Securities and Exchange Commission.
What happened: The Volt Crypto Industry Revolution and Tech ETF will track the performance of the so-called “Bitcoin Industry Revolution Companies”. These are publicly traded companies that hold the majority of their net assets in bitcoin or make the majority of their profits through mining or building mining equipment, according to a prospectus filed on October 1.
This includes companies like MicroStrategy (NASDAQ: MSTR) and mining companies like Marathon Digital Holdings (NASDAQ: MARA).
The fund will trade under the symbol BTCR. About 80% of the fund’s net assets will be invested in crypto stocks, while the remaining 20% will be invested in more traditional stocks. The ETF will not hold any cryptocurrency directly.
And after: The crypto community is still awaiting approval for a Bitcoin ETF, which some analysts are anticipating as early as this year.
SEC Chairman Gary Gensler has indicated that he is not opposed to a bitcoin ETF based on futures contracts such as those offered by Valkyrie and BlockFi.
Even though Volt’s ETF isn’t the type the crypto industry expects, it has the distinction of being the first bitcoin-focused ETF to receive regulatory approval.
Related Link: Why Bitcoin, Ethereum May Skyrocket: What To Watch Out For
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