The SEC finally validates a Bitcoin ETF, but that does not correspond to the real expectations of investors. The ETF covers a portfolio of 30 companies.
More than ten. This is the number of crypto ETF files currently on the desk of the US stock exchange regulator. For several years now, the SEC has refused to give the green light. But with the BTC explosion in 2021, players are scrambling to get their ETFs.
The SEC has finally said yes. However, it is far from meeting the real expectations of investors and financial specialists. What they favor is an ETF based on the price of the asset.
An ETF on a basket of companies with BTC
But the SEC is reluctant to approve the launch of this type of financial product in the United States. Thus, its validation of an ETF does not resolve the issue. Volt Equity’s approved product only very indirectly relates to the first cryptocurrency.
By purchasing shares, investors are actually betting on a basket of shares. This includes around thirty companies. What then does it have to do with Bitcoin? All companies in the portfolio hold BTC on their balance sheets.
The assets of the “Volt Bitcoin Revolution ETF” could thus include 25% of MicroStrategy shares. The publisher is one of the leaders in investing in Bitcoin. He holds over 100,000 BTC.
In an interview with Decrypt, however, the founder of Volt suggested that the weight of MicroStrategy could be less when the fund was launched on the New York Stock Exchange. This should take place in the coming weeks under the symbol BTCR.
A less volatile ETF, but also less profitable
Other well-known names in the Bitcoin ecosystem will be among the basket of companies, including Tesla, Square, Coinbase, and PayPal. Twitter, which is very interested in the crypto-asset, will also be there.
A pure Bitcoin ETF is therefore not for now. The promoters of these financial products will still have to wait. Until when ? The SEC has never shown an eagerness to settle this debate.
The regulator considers that these instruments present a significant risk of price manipulation. Its Canadian counterpart obviously does not share this opinion since ETFs of this type are already available in the country.
However, an ETF like Volt’s may appeal to some investors with lower risk appetite. A decline in the price of Bitcoin will have less of an impact on the Bitcoin Revolution Fund. But if it is less volatile, it will also be less prone to large increases.