The SEC approved an ETF providing indirect exposure to bitcoin via companies with bitcoin exposure last week, Coindesk reports.
The Volt Crypto Industry Revolution and Tech ETF will track publicly listed companies that either derive the majority of their profits through bitcoin mining, mining equipment manufacturing, bitcoin transactions (such as Marathon Digital Holdings), or that hold the majority of their net assets in bitcoin (such as Microstrategy).
The prospectus calls these companies “Bitcoin Industry Revolution Companies” and states that they can be “domestic and foreign.” The fund will not hold bitcoin directly, nor will it hold Canadian Bitcoin ETFs, private funds, or GBTC. The prospectus says that the advisor will use internal research and analysis to select companies for the fund.
The fund aims to invest at least 80% of its assets in crypto-focused companies with the remaining 20% invested in traditional stocks to offset risk.
The fund will be actively managed and trade under the ticker BTCR. It will have a management fee of 0.85%. Clear Street LLC is listed as the custodian. Volt Equity LLC is the advisor, and Tad Park, Volt’s CEO, is listed as the portfolio manager primarily responsible for the fund’s management.
Volt Equity currently issues four other ETFs: the Simplify Volt Robocar Disruption and Tech ETF (VCAR), the Simplify Volt Cloud and Cybersecurity Disruption ETF (VCLO), the Simplify Volt Pop Culture Disruption ETF (VPOP), and the Simplify Volt Fintech Disruption ETF (VFIN).
The SEC has yet to approve any cryptocurrency ETF applications that seek to provide investors direct exposure to the performance of bitcoin or other cryptocurrencies, either by directly holding them or holding CME-traded bitcoin futures.
SEC Chief Gary Gensler has indicated several times that his agency is more likely to approve futures-based bitcoin products as opposed to products planning to hold cryptocurrencies directly.
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