The ETF will only track companies that have 80% or more of their net assets in Bitcoin
The US Securities and Exchanges Commission (SEC) has approved an exchange-traded fund (ETF) set to provide exposure to companies whose net assets and revenue are mainly from Bitcoin or BTC-related activities.
Apart from companies that show a balance sheet with significant Bitcoin holdings, the ETF will track others that are actively engaged in Bitcoin mining, lending or manufacture of BTC mining hardware.
The fund, Volt Crypto Industry Revolution and Tech ETF, was approved on 5 October.
According to a prospectus filed with the SEC, the actively managed ETF will track both US and foreign-based companies, with examples of potential inclusions being MicroStrategy, BitFarms and Marathon Digital Holdings.
The ETF does not offer direct investment in Bitcoin (BTC). However, it will provide exposure through Bitcoin-centric companies, with 80% or more of net assets in such firms. The fund will also look at investing 20% or less in the equity markets to offset risks associated with the crypto-focused portfolio.
Volt Equity founder and CEO Tad Park is the fund’s portfolio manager, having founded the company in 2020. Previously, Park worked as a Senior Software Engineer for Silicon Valley-based Sonder Corp.
He told Business Insider that his motivation for creating the fund was his strong belief in Bitcoin and he wanted an ETF that would allow investors to exploit the opportunity crypto provides.
“We can get exposure to bitcoin without necessarily holding the coin, especially with options positions,” Park added.
The firm first filed for the ETF in June 2021, with the approval coming just days after the SEC once again delayed approval of a direct Bitcoin ETF.