The Securities and Exchange Commission of the United States has approved an exchange-traded fund that would give investors exposure to publicly traded companies that have bitcoin exposure.
According to the agency, Volt Equity’s exchange-traded fund is the first of its type, giving investors access to companies with significant Bitcoin exposure.
The Volt Crypto Industry Revolution and Tech ETF, a prospectus issued October 1 shows, would monitor the effectiveness of so-called “Bitcoin Industry Revolution Companies” – publicly-traded companies that hold a majority of their net assets in bitcoin.
Cleared to invest
The fund, which can’t be used directly as an investment in Bitcoin, will allocate at least 80% of its net assets in BIRC companies, which are defined as companies that have a majority of their net assets in Bitcoin or derive a majority of their revenue or profits directly from bitcoin mining, lending, or transacting.
The fund’s clearance comes only days after the SEC postponed a decision on four bitcoin ETFs — WidsomTree, GlobalX, Kryptoin, and Valkyrie – until late November at the earliest.
Bitcoin ETF applications increasing
While the SEC drags its feet on crypto, bitcoin ETF applications continue to pile up: BlockFi filed for a bitcoin futures ETF on Friday, raising the total number of active pending applications to over a dozen.
Marathon Digital Holdings, MicroStrategy, and Bitfarms are among the companies that Volt Equity Chief Executive Officer Tad Park is exploring for inclusion in the fund’s holdings, reports said. The BIRC category excludes Canadian ETFs, private funds, and the Grayscale Bitcoin Investment Trust.
Despite the setbacks, many in the cryptocurrency industry believe that a bitcoin ETF could be approved before the end of the month. SEC Chair Gary Gensler has also stated that a futures-based bitcoin ETF, such as those proposed by Valkyrie and BlockFi, is not out of the question.
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