An ETF dedicated to companies owning Bitcoin (BTC)
Some would argue that the Securities and Exchange Commission (SEC), the US financial regulator, has yet to approve an ETF that tracks the price of BTC. Nevertheless, it has just taken an important step by allowing investment in this ETF managed by the company Volt Equity.
Called the “Volt Bitcoin Revolution ETF” (BTCR), it will indeed be made up of companies that have acquired BTC significantly in recent years. The criteria chosen by Volt Equity are those of a significant possession of BTC and a custody in the treasury of the company.
In recent years, the SEC has been reluctant to adopt a Bitcoin ETF and rejected a request from Bitwise in 2019. There have been rumors since then, such as Goldman Sachs bank wanting to create a tracker. devoted to decentralized finance (DeFi). However, in fact, there is, to date, no ETF dedicated to cryptocurrencies on the market.
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An ETF made up of around thirty companies that have acquired BTC
As a reminder, an ETF or tracker replicates the variations of an index or a group of companies according to a defined theme (energy, transport, etc.). According to Volt Equity founder Tad Park, the BTCR will be made up of around thirty companies.
Among the latter, we find all the companies that have been talked about in recent months: Tesla, MicroStrategy, Coinbase, PayPal, Square, Twitter or even Marathon, a company specializing in mining in the United States.
Originally, MicroStrategy was to represent 25% of BTCR. Tad Park finally clarified that this percentage would be lower. However, he did not go back to the fact that the share of Michael Saylor’s company would remain the largest in the ETF. This is understandable given the large number of BTCs acquired by MicroStrategy over the past year or so.
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Has the SEC taken the plunge to approve a genuine Bitcoin ETF?
With this SEC agreement, some hope that the US regulator will change its opinion on a real Bitcoin ETF, which it has always refused to this day. Indeed, it has been several years since the crypto investment fund Grayscale has seen the doors of the SEC closed.
Last summer, Gary Gensler, chairman of the SEC, took a small step in admitting that an ETF replicating Bitcoin Futures contracts could be approved. The American financial policeman fears that the price of BTC will be manipulated, unlike Futures contracts which are linked to the price of the underlying asset.
We can nevertheless be positive for the future. While the SEC is ambivalent about cryptocurrencies, it has been more open since Gensler took over, and many are optimistic about the upcoming approval of a Bitcoin ETF. Especially since Gary Gensler is known to be quite pro-digital assets.
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About the author: Benjamin Allouch
Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. Today, I am an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.