The SEC Approves BTC ETF from Volt Equity aims to provide investors bigger exposure to a range of companies like MicroStrategy, Twitter, and Tesla which are all companies that hold large amounts of Bitcoin on their balance sheet so let’s read more in our latest Bitcoin news today.
The SEC approves BTC ETF with a portfolio that includes 30 companies including PayPal and Tesla. The approval came as the crypto space was strongly demanding approval from the SEC. The community waited for a long time for the Securities and Exchange Commission to approve a Bitcoin ETF so now the agency took a step in the right direction by approving a fund called “Volt Bitcoin Revolution ETF.”
Managed by San Francisco-based Volt Equity, the fund will provide more retail investors to get exposure to BTC by creating a portfolio of BTC Revolution Companies that have huge chunks of cryptocurrency on their balance sheets. In the initial application filed in June, Volt said that 25% of the fund’s assets will be made up of stocks in MicroStrategy which is a cyber-security company that was buying huge amounts of BTC but the Volt founder Tad Park said that the percentage could be lower when the fund that trades under the ticker symbol BTCR is listed on the New York Stock Exchange in the next few weeks.
Park added that the fund will consist of shares of 30 companies like Square, Tesla, PayPal, and Coinbase but also said that Volt decided to include Twitter that made BTC a part of its operations as well as BTC mining companies like Marathon that hold the currency in their corporate treasuries. Park said that the Bitcoin Revolution Fund will be less volatile than the pure crypto plays since the plunge in the price of BTC doesn’t have a huge effect on the shares of companies like PayPal or Tesla. Like other ETFs, the Volt Fund’s fees are modest and consist of 0.85% annual management fees. While the SEC approved the ETF, the Volt fund is still a far cry from approving a real Bitcoin ETF, Park noted:
“A year ago, an ETF like this wouldn’t have been possible. We hope this is a crack in the dam.”
In the meantime, other companies like Grayscale that have spent years applying for a Bitcoin ETF, still can’t get approval. After the SEC chair Gary Gensler noted that the agency was ready to approve them, Grayscale’s CEO Michael Sonnenshein said that this move will be akin to “favoring one child over the other.”
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