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BTCR comes on the heels of the NYSE Arca-listed Bitcoin futures ETF launched by investment company ProShares last week.
Volt Equity is the latest company to launch a Bitcoin exchange-traded fund (ETF) on the New York Stock Exchange. Volt Equity’s Crypto Industry Revolution and Tech ETF, will trade at market opening under the ticker BTCR.
Speaking with Cointelegraph, CEO Tad Park also said the ETF will debut trading on the electronic securities exchange NYSE Arca on October 28. BTCR opens at $21, seemingly as a tribute to Bitcoin’s limited supply of 21 million tokens. Although approved by the Securities and Exchange Commission (SEC) earlier in October, the product is not a pure BTC ETF. Rather, it provides exposure to Bitcoin-oriented organizations, known as “Bitcoin Industry Revolution Companies.”
According to an SEC filing, companies that fit this mold must fulfill specific criteria. They must either hold much of their assets in BTC or derive most of their earnings from BTC mining, lending, or transacting. Examples include Tesla, Twitter, Square, MicroStrategy, as well as Coinbase crypto exchange. Furthermore, other notables include mining companies such as Canaan, Bitfarms, and Riot Blockchain.
According to the prospectus, BTCR will allocate 80% of its holdings to the Bitcoin Industry Revolution Companies. In addition, Volt Equity will also conduct regular reviews of the fund’s holdings and allocation when due based on research and data.
Volt Equity also explains that BTCR takes a regulatory approach based on PlanB’s Bitcoin Stock-to-Flow (S2F) model. This is a key quantitative model that intends to predict BTC prices. As the company put it:
“We consult the famous Stock-to-Flow model as one input to understand how Bitcoin’s mining supply shock due to its scheduled halvings could affect Bitcoin’s price and when. Based on what we’re seeing, we could adjust our mining-related exposure accordingly.”
Volt Equity ETF Is One of Several Filings Looking to Capitalize on The New US ETF Arena
Park stresses that BTC is not just a coin, but an entire revolution that comprises miners, companies, and everyday holders. Park further explains that several companies now incorporate Bitcoin into their balance sheets. He also said regular people want to “hold the first digital store of value that can’t be inflated away by a government.”
BTCR comes on the heels of the NYSE Arca-listed Bitcoin futures ETF launched by investment company ProShares last week. ProShares’ Bitcoin Strategy ETF was the first Bitcoin futures-linked ETF to launch in the United States – with the SEC’s blessing.
US securities regulators deliberated for years whether to approve their first Bitcoin ETF. The Commission finally suggested less than two weeks ago that it would no longer stand in the way of Bitcoin ETF launches. The only proviso given is that such ETF filings must be unleveraged and futures-based. Anything short of that runs the risk of facing rejection, as the SEC reportedly rejected a Valkyrie filing.
AXS Investments, another major asset management firm, filed for two BTC futures ETFs on October 27.