SEC Approves Volt Equity ETF, Provides Investors Exposure to Bitcoin (BTC) Indirectly

The SEC (United States Securities and Exchange Commission) has approved the well-awaited exchange traded fund called “Volt Crypto Industry Revolution and Tech ETF”. It has provided investors easy access[...]

The SEC (United States Securities and Exchange Commission) has approved the well-awaited exchange traded fund called “Volt Crypto Industry Revolution and Tech ETF”. It has provided investors with easy access to companies that have a high level of exposure to Bitcoin (BTC). 


This ETF intends to track “Bitcoin Industry Revolution Companies”. These companies are the ones that

  • Either hold most of their net assets in bitcoin BTC or
  • Derive most of their earnings from bitcoin related work, such as 
  • Mining BTC
  • Lending BTC
  • Transacting BTC.


As per the SEC filing, the Volt Crypto Industry Revolution and Tech ETF will invest 80% of the holdings of the fund in such companies that are categorized as “Bitcoin Industry Revolution Companies”. Thus, new exchange traded funds will be listed under the BTCR ticker symbol as a New York Stock Exchange Arca. 


The SEC has recently announced that they are delaying their decision on approving physically-backed Bitcoin ETFs  by 45-days. This means that the times of the following bitcoin ETFs will be pushed back to:

  • Global X Bitcoin Trust: November 21, 2021
  • Valkyrie XBTO Bitcoin Futures Fund: December 11, 2021
  • WisdomTree Bitcoin Trust: December 11, 2021
  • Kryptoin Bitcoin ETF: December 24, 2021


These physically-backed bitcoin exchange traded funds derive their value by either holding bitcoin BTC in custody or tracking the price of the BTC coins. However, the SEC has given go ahead to Volt Crypto Industry Revolution and Tech ETF, which doesn’t have direct exposure to bitcoin but seeks exposure to companies generating a significant amount of their business from bitcoin related activities. Therefore, the US SEC is allowing investors to increase their exposure to BTC indirectly. 


Market is currently speculating that the SEC is going to approve its first pure-play Bitcoin ETF soon with some modifications. Bloomberg analyst Eric Balchunas has said that the securities watchdog may pass a Bitcoin futures equivalent in the coming weeks and continue mulling a spot bitcoin ETF.


He said in his tweet:


“Yes, the SEC has kicked can on bitcoin ETF approval BUT that is for the physically-backed ones under '33 Act. The futures ETFs filed under the '40 Act (which Genz loves) are very much alive and likely on schedule (we think 75% chance approved in Oct).”


According to  Eric Balchunas, the potential approval dates are October 18, 2021, October 19, 2021, October 25, 2021, and November 1, 2021.


Experts believe that the go ahead given by SEC to invest in BTC indirectly through  Volt Crypto Industry Revolution and Tech ETF has likely contributed to the momentous BTC price rally this week.