The US Securities and Exchange Commission approved the launch of the Volt Bitcoin Revolution ETF, which includes about 30 companies with large investments in bitcoin.
The Exchange Traded Fund (ETF) will be operated by San Francisco-based Volt Equity. According to the initial filing of Volt Equity, filed with the regulator in June, 25% of the fund’s assets will be held by shares of MicroStrategy, which regularly buys large amounts of bitcoins.
However, in an interview with Decrypt, Volt founder Tad Park said that the percentage could be slightly lower, as the fund will include shares of about 30 companies, including Tesla, Square, Coinbase and PayPal. Volt decided to include Twitter, which recently launched a bitcoin tip system, as well as mining company Marathon. The fund will be listed on the New York Stock Exchange (NYSE) in the next few weeks and will trade under the ticker BTCR.
“The Volt Bitcoin Revolution ETF will provide retail investors with indirect access to bitcoin through companies holding significant amounts of bitcoin on their balance sheets. The new fund will be less volatile compared to Bitcoin, as the fall in its value will not have a serious impact on the shares of companies such as Tesla or PayPal. A year ago, one could not even imagine the emergence of this ETF in the United States, and we hope that it will become a “crack that breaks the wall,” said Park.
The approval of such an investment product by the Commission will strengthen the hope of investors that the agency will “give the green light” to cryptocurrency ETFs. According to Park, the emergence of the Volt Bitcoin Revolution ETF was a step that could bring the event closer. This indicates that the attitude of SEC to Bitcoin is gradually softening.
The agency is rejecting applications from companies to launch Bitcoin ETFs due to fears of market manipulation. SEC Chairman Gary Gensler recently announced that the Commission could approve bitcoin ETFs investing in futures contracts. However, Grayscale CEO Michael Sonnenshein believes it will be economically ineffective.
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