The instrument will appear on New York Stock Exchange under the ticker BTCR.
SEC has approved an application to launch an exchange-traded fund (ETF) by Volt Equity. This information appeared on the official website of the regulator.
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. 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 BTC investor – the software manufacturer MicroStrategy. Volt Equity representatives also plan 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 the 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.
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 liked the idea of a crypto derivatives ETF better. Market participants were quick to use the statement of the SEC Commissioner to speed up 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 predicted that US regulators are 75% likely to approve a cryptocurrency-based exchange-traded fund in October. 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 an exchange-traded fund based on a cryptocurrency 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.