The US Securities and Exchange Commission (SEC) has given an ETF the green light. The special thing about it: This ETF offers investors a stake in listed companies that hold assets in Bitcoin.
What emerges from a prospectus that was filed with the SEC on October 1. The new exchange-traded fund is called Volt Crypto Industry Revolution and Tech ETF. Its purpose is to track the performance of listed companies that either generate most of their profits from selling mining equipment, mining Bitcoin or keep most of their net assets in the most popular cryptocurrency.
These are companies such as Marathon Digital Holdings and MicroStrategy.
Fund to achieve capital growth
The Volt Crypto Industry Revolution and Tech ETF is designed to generate capital appreciation. According to the prospectus, the annual operating costs of the fund are limited to management fees of just 0.85%. Operating costs are what is paid each year as a percentage of the investment's value. There are no other fees.
At least four-fifths of the fund's net assets are invested in crypto stocks. The rest will offset the risk by investing in more traditional stocks. The fund should not hold any cryptocurrencies directly.
Just a few days ago, the SEC postponed its decision on a number of Bitcoin ETFs. These include, for example, GlobalX and Valkyrie. At the same time, more and more applications for Bitcoin ETFs are being received. The popular crypto exchange BlockFi applied for an ETF for Bitcoin futures on Friday, October 8th. As a result, there are now almost 15 active applications pending.
Approval of a real Bitcoin ETF by the end of the month?
Hopeful members of the crypto community feel that getting a Bitcoin ETF approved by the end of the month is not out of the question. The SEC chairman, Gary Gensler, does not appear to be against the proposals from Valkyrie and BlockFi.
Granted, the crypto community hasn't been waiting for a Bitcoin ETF like Volt, but it's a step in the right direction. After all, it is the first ETF of its kind to receive regulatory approval. The inside article was titled, "The SEC has just approved what's closest to a US Bitcoin ETF." Volt CEO Tad Pak said in an interview that it was difficult to get approval to obtain:
I am a firm believer in Bitcoin and I was excited about launching an ETF that can benefit from the coming Bitcoin revolution. We can get involved in Bitcoin without necessarily owning the coin, especially with option positions. It was very difficult to get it through, but we're really glad they finally approved it.
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