The US regulator, Securities and Exchange Commission (SEC), approved an exchange-traded fund (ETF) last week that will provide investors exposure to cryptocurrencies but will not hold any digital currency directly.
The ETF has been brought in by Volt Equities and is dubbed as Volt Crypto Industry Revolution and Tech ETF. It will track the performance of the several publically traded companies that are closely tied with the cryptocurrency industry or hold a large number of digital currencies.
Some of the companies included in the ETF are MicroStrategy (NASDAQ: MSTR), which holds billions in Bitcoins, and Marathon Digital Holdings (NASDAQ: MARA) that builds crypto mining equipment.
According to the prospectus of the ETF, it will invest 80 percent of the entire assets in crypto stocks, while the other 20 percent will be invested in purchasing traditional stocks to balance out the risks of the crypto economy.
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The ETF will be listed under the ticker BTCR and is one of the closest managed financial instruments on the stock exchanges for some exposure to crypto prices.
Meanwhile, the SEC is still reluctant to approve the long-pending applications for the issuance of Bitcoin ETFs. It recently pushed the decision deadline of the approval of four Bitcoin ETFs, which were applied by GlobalX, WidsomTree, Kryptoin and Valkyrie, until the end of November.
So far more than a dozen companies are seeking the approval of a Bitcoin ETF in the United States. Despite the regulatory hostility, BlockFi became the latest to file for a Bitcoin ETF. Some companies have even filed for an Ethreum ETF.
The SEC Chair Gary Gensler also hinted several times that he is not opposed to approve a crypto futures fund, and the latest approval of Volt Equities’ fund has given the crypto companies more hope for a Bitcoin ETF.