Volt Equity’s Bitcoin Linked ETF Gets SEC Approval

Securities and Exchange Commission regulators have given the green light to Volt Crypto Industry Revolution and Tech ETF, which will trade under the ticker symbol BTCR.

Volt Equity’s exchange-traded fund is the first of its kind, giving investors access to companies with high Bitcoin exposure, according to the agency.

A Volt Equity representative did not immediately return FOX Business’s request for comment.

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The fund, which cannot invest directly in Bitcoin, will invest at least 80% of its net assets in “bitcoin industry revolution companies”, which are defined as those that hold the majority of their net assets in largest cryptocurrency in the world or derive the majority of it. their income or profits directly from mining, lending or trading bitcoin.

Volt Equity CEO Tad Pak told Insider he is considering companies like MicroStrategy, Marathon Digital Holdings and Bitfarms as part of the fund’s holdings. Canadian ETFs, private funds and the Grayscale Bitcoin Investment Trust are not included in the designation “Bitcoin Industry Revolution Companies”.

At least 15% of the fund’s net assets will be held in technology companies that derive 50% of their income from software, technological hardware or products or services based on processing chips or artificial intelligence chips developed in internal. In addition, the fund may invest up to 20% of the portfolio to gain broad exposure to the equity market, including through ETFs, and to offset its risk.

The ETF will also look at metrics like the Stock-to-Flow model, which assesses the current stock of bitcoin against the flow of new bitcoin mined that year.

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Volt’s ETF approval comes after the SEC said in a filing last week that it would delay its decision on four Bitcoin ETFs – the Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust and Kryptoin Bitcoin ETF – as of November 21, December 8, December 11, and December 24, respectively. Other companies vying for Bitcoin ETF approval include Fidelity and VanEck.

While no Bitcoin ETF applications submitted to the United States have been approved to date, SEC Chairman Gary Gensler recently expressed interest in reviewing bitcoin ETF applications linked to futures contracts under the Investment Company Act of 1940.

Bitcoin, which trades around $ 54,000 per coin at the time of publication, is up about 88% year-to-date, according to CoinDesk.