SEC Approves U.S. Bitcoin ETF (Sort Of)

The U.S. Securities and Exchange Commission (SEC) has approved Volt Equity's exchange traded fund (ETF) that tracks companies that hold a majority of their net assets in Bitcoin.

The approval is as close as U.S. investors can get right now to a Bitcoin ETF. The Volt Crypto Industry Revolution and Tech ETF will trade under the ticker symbol “BTCR.”

This roundabout investing strategy is necessary because the SEC has been putting off approving any direct Bitcoin ETFs such as those that are available for investors to purchase in Canada.

In the U.S., nearly two dozen proposed cryptocurrency ETFs are currently stuck in limbo amid fears of potential for market manipulation. The U.S. has not approved a single crypto ETF yet, although SEC Chair Gary Gensler did recently note that he is more open to a Bitcoin futures ETF.

As a result, the Volt ETF will not directly invest in Bitcoin. Instead, it looks to put at least 80% of its assets in “Bitcoin revolution companies,” options and ETFs with exposure to those companies. The rest will go into broad equity markets to offset the risk of the portfolio.

The Volt ETF will also look at indicators such as the “stock-to-flow model,” which evaluates the current stock of Bitcoin against the flow of new Bitcoin mined that year.