An exchange-traded fund (ETF) that will give investors exposure to publicly traded companies which own bitcoin has been approved by the U.S. Securities and Exchange Commission.
What Happened: The Volt Crypto Industry Revolution and Tech ETF will track the performance of so-called “Bitcoin Industry Revolution Companies.” These are publicly listed companies that either hold a majority of their net assets in bitcoin, or that make a majority of their profits through mining or building mining equipment, according to a prospectus filed Oct. 1.
That includes companies like MicroStrategy (NASDAQ:MSTR) and mining companies like Marathon Digital Holdings (NASDAQ:MARA).
The fund will trade under the ticker 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 cryptocurrencies directly.
What’s Next: The crypto community is still waiting for the approval of a Bitcoin ETF, which some analysts are anticipating as soon as this year.
SEC Chair Gary Gensler has indicated that he is not opposed to a futures-based bitcoin ETF such as those proposed by Valkyrie and BlockFi.
Even though Volt’s ETF is not the type the crypto industry is waiting for, it has the distinction of being the first bitcoin-focused ETF to receive regulatory approval.
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