The Volt Crypto Industry Revolution & Tech ETF (BTCR) began trading today on the NYSE Arca and focuses on companies that have exposure to bitcoin and the infrastructure surrounding it. BTCR opened at $21.00 in an homage to the 21 million bitcoin cap.
“Bitcoin is not just a coin, it’s a revolution that encompasses miners, companies using it on their balance sheet, and everyday HODLers who want to hold the first digital store of value that can’t be inflated away by a government,” Volt Equity’s CEO Tad Park told CoinTelegraph.
The fund invests in companies that have exposure to bitcoin and the bitcoin infrastructure, and it includes an options overlay strategy to hedge against market movement and individual company movement. Bitcoin exposure companies are called “Bitcoin Industry Revolution Companies” and include foreign and domestic companies that have most of their net assets on their annual filing in the last 12 months in bitcoin and/or make most of their revenue from mining, lending, transacting in bitcoin, or making bitcoin mining equipment, per the prospectus.
At least 15% of the fund will also be comprised of “Technology Companies” that make half of their profits from software, technology hardware, and/or services and products that involve self-developed processing chips and AI chips. In addition, up to 25% of the assets will be invested in one analytics software company that Volt Equity believes to be bullish on bitcoin, would benefit from bitcoin’s increasing value, and be willing to convert free cash into bitcoin.
Some of the revolutionary companies the fund invests in include Microstrategy (MSTR) at a 12.67% weight, along with a call option at 2.8%; Marathon Digital Holdings (MARA) at a 15.71% weight, along with a call option at 0.95%; and Bitfarms Ltd/Canada (BITF) at a 15.52% weight.
BTCR is an actively managed fund and utilizes the stock-to-flow model to determine concentrations in its bitcoin-related investments.
“We consult the famous Stock-to-Flow model as one input to understand how Bitcoin’s mining supply shock due to its scheduled halvings could affect Bitcoin’s price and when. Based on what we’re seeing, we could adjust our mining-related exposure accordingly,” Volt Equity said.
BTCR carries an expense ratio of 0.85%.
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