The Crypto World Moves A Step Closer To A Direct Bitcoin ETF

The SEC has approved the Volt Crypto Industry Revolution and Tech ETF. The fund intends to give investors access to companies with exposure to Bitcoin — bringing the crypto world a step closer to a direct Bitcoin ETF.

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The price of Bitcoin rose on Friday. Meanwhile, the approval of the Bitcoin ETF could be an indicator of more to come. The SEC this month has to approve, deny or delay as many as four Bitcoin-futures ETFs, according to Bloomberg.

The SEC approved the Volt Equity ETF on Oct. 5. The fund seeks to invest most of its money into what it calls “Bitcoin Industry Revolution Companies.” The ticker symbol when it starts trading will be BTCR.

Those companies, it says, hold most of their assets in Bitcoin or make most of their money from Bitcoin transactions. Those transactions include mining, lending or other operations, like making mining equipment, according to a filing.

The Volt Bitcoin ETF will invest at least 80% of its net assets in those companies, according to the filing.

Additionally, Tad Pak, Volt Equity’s CEO, told Insider that he was considering companies like Microstrategy (MSTR), Marathon Digital Holdings (MARA) and Bitfarms (BITF) as part of the fund’s holdings.

“Holding a basket of companies focusing on different things brings value that’s not tied to Bitcoin,” Volt Equity’s website says. “That non-Bitcoin value won’t be as affected for Bitcoin-related crashes.”

The filing said that the companies that hold most of their net assets in Bitcoin “will not include Canadian ETFs, private funds, or GBTC,” referring to the Grayscale Bitcoin Investment Trust (GBTC).

Price Of Bitcoin, Bitcoin Stocks

In years past, the SEC has been reluctant to approve a pure-play Bitcoin ETF. The U.S. government has raised concerns about the cryptocurrency’s volatility, energy consumption and its role as a vehicle for shady financial activity. It has also sought to strengthen tax-reporting requirements around the digital asset.

However, SEC Chair Gary Gensler this month said the agency would not pursue an outright ban on cryptocurrencies. And in August, he signaled that agency could be more receptive to applications for ETFs tied to Bitcoin futures and that comply with a 1940 law intended to increase transparency for companies like mutual funds.

He said in August that “there are a number of mutual funds that invest in Bitcoin futures on the Chicago Mercantile Exchange.”

“I anticipate that there will be filings with regard to exchange traded funds under the Investment Company Act,” he continued. “When combined with the other federal securities laws, the ’40 Act provides significant investor protections. “

Next Bitcoin ETFs?

Meanwhile, James Seyffart, an ETF analyst with Bloomberg Intelligence, told the publication that Bitcoin futures ETFs from ProShares and Valkyrie Investments were among those that could be approved.

The price of Bitcoin gained 1.15% to $54,646 on Friday.

Among Bitcoin stocks, Microstrategy rose 2.3%. Marathon Digital stock gained 2.8%. Coinbase (COIN) fell 1.4%.

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