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The Bitcoin Revolution ETF from Volt will track the companies that have a significant number of Bitcoins on their balance sheet.
The world’s largest cryptocurrency Bitcoin (BTC) has been gaining momentum over the fact that the US Securities and Exchange Commission (SEC) is likely to approve a Bitcoin ETF ahead this month. Although the SEC has yet to take a call on it, the securities regulator approved an ETF comprising of companies holding a large number of Bitcoins on their balance sheet. On Thursday, October 7, the US SEC approved the Volt Bitcoin Revolution ETF managed by San Francisco-based Volt Equity.
The fund seeks to provide retail investors exposure to Bitcoin through the “Bitcoin Revolution Companies”. Companies that hold a significant amount of Bitcoins on their balance sheet fall in this category.
Also, the portfolio of the Volt Bitcoin Revolution ETF includes 30 companies consisting of giants like Tesla and Paypal. Besides, it also includes companies deriving a majority of their revenue from other activities like Bitcoin mining, lending, or transacting. This new ETF from Volt will appear as an Arca listing on the New York Stock Exchange (NYSE) under the ticker symbol BTCR. The SEC filing notes:
“While the Fund has a bitcoin industry focus, under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in Bitcoin Industry Revolution Companies. At least 15% of the Fund’s net assets will be in Technology Companies.”
Volt Bitcoin Revolution ETF: Tackling Bitcoin Price Volatility
Unlike other Bitcoin ETF proposals, the Volt Bitcoin Revolution ETF doesn’t track the price of Bitcoin or hold the asset in custody. The Volt Bitcoin Revolution ETF will be less volatile as compared to the pure crypto plays. This is because the plunge in the Bitcoin price will not affect the share value of the companies holding it.
Also, the management fee of the Volt Revolution ETF is very modest at just 0.85%. Note that the Volt Bitcoin Revolution ETF is nowhere similar to a Bitcoin ETF. However, Volt founder Tad Park remains optimistic about this development. “A year ago, an ETF like this wouldn’t have been possible,” said Park. “We hope this is a crack in the dam”.
On the other hand, speculations for the approval for the first Bitcoin ETF are on the rise. Many analysts believe that the first Bitcoin ETF can arrive this month. Bloomberg’s senior ETF strategist Eric Balchunas said that there’s a 75% probability of getting the first Bitcoin ETF in the market.