SEC approves ETF that tracks companies with Bitcoin exposure
American investors seeking to gain exposure to Bitcoin are in luck as the SEC has approved an ETF which allows them to do so.
US SEC approved an ETF that tracks companies with significant #Bitcoin exposure.— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) October 8, 2021
Companies tracked include MicroStrategy, BTC miners etc
The SEC has approved Volt Equity’s ETF, which seeks to closely track the performance of firms which hold most of their net assets in Bitcoin or Bitcoin derivatives, such as mining or lending, said the fund’s CEO, Ted Pak.
Among the ‘Bitcoin revolution companies’ set to be featured in the actively managed fund are MicroStrategy, Marathon Digital Holdings and Bifarms, as well as Tesla, Twitter and Square.
Following its approval on October 5, the Volt Crypto Industry Revolution and Tech ETF will trade under the ticker BTCR.
"I'm a strong believer in bitcoin and was excited about launching an ETF that could take advantage of the coming bitcoin revolution," SAID Pak. "We can get exposure to bitcoin without necessarily holding the coin, especially with options positions."
Investing in Bitcoin in this way has been made necessary as the SEC has not been approving Bitcoin ETFs over fears of market manipulation.
Exactly. According to Gary Gensler, investors are safe when buying an ETF on companies that masquerade as quasi-Bitcoin-ETFs, but they are not safe investing directly into a spot Bitcoin ETF?— DataSci ∞/21M 🌋🍌🍞 (@DataSci53066689) October 8, 2021
SEC under Gensler is getting more ridiculous than ever before.
Gensler has said previously that he is open to the possibility of a Bitcoin futures ETF, while north of the border, in Canada, Bitcoin ETFs are available to investors.
What would a US Bitcoin ETF mean for the price of digital gold? Dylan LeClair, an on-chain analyst, suggests a US Spot ETF would require the purchasing of 329,651 Bitcoin, which would make its price “skyrocket”.
A rough estimate a U.S. Spot Bitcoin ETF:— 🟠Dylan LeClair🟠 (@DylanLeClair_) October 7, 2021
Canada's Purpose ETF currently holds 21.7k BTC.
Using the size of equity markets as a relative estimate (CAN: $3.1 Trillion, USA: $47 Trillion), a U.S. Spot ETF would have to buy approx: 329,651 BTC
The price of bitcoin would skyrocket. pic.twitter.com/OjYoEWYMNs
At the time of writing the Bitcoin price is sitting at $54,143 as the stage is set for Q4.