28.10.2021

US SEC approves launch of ETF on shares of companies owning bitcoin

The US Securities and Exchange Commission (SEC) has approved an application to launch Volt Equity’s Exchange Traded Fund (ETF). Information about this appeared on the official website of the regulator .

The Volt Equity ETF – the Volt Crypto Industry Revolution and Tech ETF – will track changes in the stocks of around 30 companies that hold most of their net worth in Bitcoin (BTC) . Also, the fund is focused on organizations, a significant share of the profits of which is received from activities related to cryptocurrency. Volt Equity representatives, they said, drew attention to the “bitcoin revolution” companies.

It is known that developers will invest about 25% of the fund in the largest bitcoin investor – software manufacturer MicroStrategy. Volt Equity also plans to use ETFs to track Tesla, Square, Coinbase and PayPal shares.

The financial instrument, as conceived by the developers, will appear under the ticker BTCR on the New York Stock Exchange within three weeks. Volt Equity is confident that with the help of the ETF developed by the company’s representatives, market participants will be able to earn on Bitcoin, bypassing direct investments in cryptocurrency .

Business Insider noted that the approved exchange-traded fund was closer to Bitcoin ETF in spirit than other funds . Recall that market participants have been waiting for the approval of a financial instrument in the United States for several years. BTCR may become a temporary alternative to bitcoin ETF.

Crypto Industry Pending

We will remind, recently the head of the SEC Gary Gensler shared with market participants his opinion about the cryptocurrency- based funds traded on the exchange . It turned out that he likes the idea of ETF based kriptoderivativov . Market participants were quick to use the statement of the SEC Commissioner to accelerate the approval of the financial instrument. The Commission is currently reviewing several applications to launch a derivatives-based crypto ETF.

Recently, Bloomberg analyst Eric Balchunas  gave a forecast according to which US regulators, with a 75% probability, will approve an exchange-traded fund based on cryptocurrency in October 2021. The expert explained his opinion by the fact that at the moment, according to his observations, there are several “viable” applications for crypto-ETFs under consideration by the SEC.

The Commission’s approval of the launch of a cryptocurrency-based exchange-traded fund could trigger bitcoin to enter a new growth phase. Previously, such a forecast was shared by a well-known analyst in the crypto community PlanB.

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