US SEC approves Volt Crypto Industry Revolution and Tech ETF

The ETF indirectly provides investors exposure to the crypto market

SEC logo on buidling                                 
US SEC building, Washington DC, USA – Photo: Shutterstock
                                

The US Securities and Exchange Commission (SEC) has approved the Volt Crypto Industry Revolution and Tech exchange-traded fund (ETF), which does not directly invest in cryptocurrencies, but indirectly provides investors exposure to the crypto market.

The ETF tracks companies that hold most of their net assets in bitcoin or derive much of their profit or revenue from bitcoin-related activities like mining, lending, or manufacturing mining equipment.

The fund defines companies with exposure to bitcoin as ‘bitcoin industry revolution companies” and will invest at least 80% of its net assets in those companies.

The ETF will be listed and traded on the New York Stock Exchange (NYSE) Arca under the ticker symbol BTCR.

SEC recently delayed deciding regarding four bitcoin ETFs

On 1 October, the SEC delayed deciding on whether or not to approve four bitcoin ETFs. 

The Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust and Kryptoin Bitcoin ETF were all rescheduled to 21 November, 8 December, 11 December and 24 December, respectively.   

When making its decision the SEC said: “The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and any comments.”

Due to the SEC’s decision, the Volt ETF is the closest investors have to a bitcoin ETF for the time being.

Other countries are moving quicker

In August, Melanion Capital announced that it has won the approval of France’s securities authority for an ETF that offers a 90% correlation to bitcoin’s price.

The Paris-based alternative asset manager has obtained permission from the Autorité des Marchés Financiers for the ETF.

The Melanion BTC Equities Universe Undertakings for Collective Investment in Transferable Securities (UCITS) ETF will track the company’s Melanion Bitcoin Exposure Index – which is administered by German fintech BITA – and is due to be listed on Euronext Paris.

By tracking this index, the ETF “seeks to expose investors to the daily price movements of bitcoin through a diversified wrapper” that complies with the EU UCITS Directive.

Further reading: Wells Fargo and JP Morgan file for bitcoin funds

Further reading: Barclays stock analysis: will price react to strong results?

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