Alternative Investments/Digital: The Volt ETF, Focused On Bitcoin Companies, Gets SEC Nod
The new ETF will invest in bitcoin industry revolution companies and technology companies.
The SEC approved on October 5 a new ETF that provides investors exposure to companies that hold a majority of their net assets in bitcoin or derive a majority of their profit or revenue from bitcoin-related activities. (MARKETS INSIDER)
The SEC has not accorded its approval to a number of ETFs that seek to invest in bitcoin, while chairman Gary Gensler has, on more than one occasion, indicated his preference for an ETF based on underlying bitcoin futures.
Given this position, the newly approved Volt Crypto Industry Revolution and Tech ETF may be the closest thing resembling a pure-play bitcoin ETF available to investors currently.
Volt Crypto Industry Revolution and Tech ETF
The Volt ETF will invest in “Bitcoin Industry Revolution Companies” up to 80% of its portfolio. It will trade on the NYSE Arca exchange under the ticker symbol of BTCR.
According to Tad Pak, CEO of Volt Equity, the so-called Bitcoin Revolution Companies could include MicroStrategy (NASDAQ: MSTR), Marathon Digital Holdings (NASDAQ: MARA), and Bitfarms (NASDAQ: BITF), among others.
He told Insider that the Volt ETF would focus only on bitcoin -related investments, as different from other funds that spread their portfolio across different types of digital assets.
The fund may also invest in options and other ETFs with exposure to bitcoin companies.
“I’m a strong believer in bitcoin and was excited about launching an ETF that could take advantage of the coming bitcoin revolution,” he told Insider. “We can get exposure to bitcoin without necessarily holding the coin, especially with options positions.”
Related Story: Invesco And Galaxy Digital To Partner On Crypto ETFs
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