SEC approves first US Bitcoin equity ETF

Rick Steves

“The SEC’s acknowledgment that existing frameworks can already be used to provide investors with regulated products to access the cryptocurrency growth story is a watershed moment that will open the door to further innovation in the space”, said Alpay Soytürk, Chief Regulatory Officer at Spectrum Markets.


The U.S. Securities and Exchange Commission (SEC) has approved a close enough Bitcoin exchange-traded fund (ETF), one designed to provide investors with exposure to publicly traded companies with exposure to bitcoin.

The Volt Crypto Industry Revolution and Tech ETF will track the performance of so-called “Bitcoin Industry Revolution Companies”, according to a prospectus filed Oct. 1.

The ETF tracks publicly listed companies that either hold a majority of their net assets in bitcoin, like MicroStrategy or that make a majority of their profits through mining or building mining equipment, like Marathon Digital Holdings.

At least 80% of the fund’s net assets will be invested in crypto stocks. The remaining 20% will be invested in more traditional stocks to offset the risk of the fund’s focused portfolio.

The ETF will not hold any cryptocurrencies directly, but will invest 80% of the fund’s net assets in crypto stocks while offsetting risk with the remaining 20% which will be invested in non-crypto stocks.

The SEC’s unclear path toward crypto has prompted speculation over whether the financial watchdog would ever approve a crypto ETF. The regulator did delay its decision on four bitcoin ETFs – GlobalX, WidsomTree, Kryptoin, and Valkyrie – to late November at the earliest.

The truth is that the Volt Crypto Industry Revolution and Tech ETF, which will trade under the ticker BTCR, does not track cryptocurrencies directly.

Alpay Soytürk, Chief Regulatory Officer at pan-European securitized derivatives trading venue Spectrum Markets, commented on the approval of the first US bitcoin-equity ETF.

“The SEC’s acknowledgment that existing frameworks can already be used to provide investors with regulated products to access the cryptocurrency growth story is a watershed moment that will open the door to further innovation in the space.

“Longer term, our view continues to be that current regulatory definitions need to be updated, and their scope expanded, to more comprehensively cover the complexities and idiosyncrasies of cryptocurrency, if it is to realize its potential as a more mainstream asset class”, Mr. Soytürk continued.

“But for now, this is a very positive step in the right direction, that sees regulators and the financial community come together to meet the ever-growing investor demand for secure and effective ways of investing in cryptocurrencies. Clear, consistent and effective regulation will be the pillars on which the next chapter of the cryptocurrency story are built.”

Read this next

Retail FX, Uncategorized

Robinhood CEO eyes billion-dollar revenue as crypto volumes surge

Robinhood has observed a 75% MoM rise in cryptocurrency trading volumes in November, marking a reversal from its previous trend. According to an SEC filing on December 4, this boost contrasts with flat trading volumes in equity and options contracts during the same period.

Digital Assets

Bloomberg, Hashdex expect SEC’s imminent approval of Bitcoin ETFs

Hashdex, an asset manager among the 13 contenders for launching a spot Bitcoin exchange-traded fund (ETF) in the United States, anticipates the debut of the first spot Bitcoin ETF by the second quarter of 2024, with a spot Ether ETF expected to follow.

Industry News

Witness the intensifying competition as UF AWARDS MEA 2024 nominations persist!

The countdown is on, with less than two weeks remaining to nominate outstanding brands for this prestigious event, culminating in the highly anticipated ceremony during iFX EXPO Dubai 2024 in January.

Retail FX

Saxo Bank’s FX volumes rise despite overall lackluster turnover

As many currency markets saw a relatively active period in November, Copenhagen-based Saxo Bank reported its monthly metrics, which showed a moderate rebound month-over-month.

Market News

S&P 500 Rally Faces Abrupt Halt: Analysts Assess Market Signals

The S&P 500, a benchmark index tracking the stock performance of 500 of the largest US companies, has ignited a flurry of discussions among financial analysts due to its recent performance.


TraderEvolution at FMLS:23: Andrew Saks on how brokers can go multi-asset

In an insightful interview with FinanceFeeds, Andrew Saks of TraderEvolution Global discussed the industry’s evolution towards multi-asset trading. He highlighted challenges in integrating diverse asset classes and the importance of API connectivity. Andrew also touched on emerging trends in options, futures, and fixed income, underscoring the need for adaptable trading technology in today’s dynamic market.

Market News

Powell’s Pivot Navigating the Dynamics of USD, Interest Rates, and Market Expectations

Federal Reserve Chair Powell has signalled a decisive end to the cycle of interest rate hikes for the USD.

Market News

Inflation Concerns, Policy Divergence, and Market Sentiments in the UK

Amidst the recent global revaluation of inflation, Megan Greene, a steadfast MPC member, advocates for a proactive stance. Addressing concerns in Leeds, she calls for an upward adjustment of the Bank of England’s policy rate, cautioning against the potential risks of a too-conservative approach. Greene questions the assumed restrictiveness in the current monetary stance, suggesting it might be less robust than perceived, especially in scenarios of persistent inflation.

Digital Assets

JPMorgan’s stablecoin ventures into interbank transactions

JPMorgan Chase & Co.’s proprietary digital token, JPM Coin, is set to expand its use case by facilitating interbank transactions on Partior, a blockchain ledger developed in collaboration with DBS Bank, Temasek, and Standard Chartered.