At a time when the cryptocurrency market is beginning to focus significantly on the SEC (US Securities and Exchange Commission) in connection with the potential historical approval of the first BTC ETF, this commission granted permission for the “Volt BTC Revoultion ETF”, a fund monitoring companies that have invested in BTC.
A fund that was established by the company Volt Equity from San Francisco, although it does not allow investors to invest directly linked to the price of BTC, to some extent its success affects the price of BTC. The fund’s return depends on the performance of companies that have a significant amount of BTC in their investment portfolio or do business with it in some way.
A few months ago, Volt said that their ETFs would monitor the share prices of about 30 different companies. The largest share in it should be the company’s shares Microstrategy (about 25%), ie the company that holds the most Bitcoin from publicly traded companies (over 110,000 BTC). In addition to Michael Saylor’s company, company shares will also be represented in this ETF Tesla, Square, Coinbase or PayPal. However, there is also a mining BTC giant, for example Marathon or Twitter, which does not yet have any Bitcoin on its balance sheet, but was the first large social network in the world to start enabling BTC transactions between its users.
Volt BTC Revoultion ETF can be an attractive ETF for institutional investors interested in indirect exposure to BTC. This ETF is expected to be less volatile than the price of BTC itself, because, for example, shares of Tesla or PayPal are not so prone to price movements of the most famous cryptocurrency. This ETF may be more interesting for investors compared to other alternative investments in the crypt market due to the fact that the fees will be as low as for other ETFs – they consist of 0.85% of the annual management fee.
The first step to enabling BTC ETF?
Market reactions to the approval of this ETF are positive. Analysts have stated that although this ETF is not directly linked to BTC or the crypto market, the SEC would probably not have allowed it in the recent past. Tad Park founder and CEO of Volt Equity said: “A year ago, such an ETF would not have been possible. We hope it’s a crack in the dam.” He suggested that the approval of this ETF was perhaps a harbinger of the ETF’s approval directly on BTC.