The first bitcoin-based ETF, which tracks the price of digital currency across a range of exchanges and includes futures contracts on its portfolio as well as short positions, has been launched by US investment firm Volt Equity.
The “what are etfs stocks” is a type of investment that invests in stocks. The “Volt Equity’s ‘Bitcoin revolution’ ETF” is an example of this type of investment. It went live on the New York Stock Exchange today.
The New York Stock Exchange (NYSE) continues to list Bitcoin (BTC)-linked exchange-traded funds (ETFs), with Volt Equity being the most recent business to do so.
Volt Equity’s Crypto Industry Revolution and Tech ETF will begin trading on the NYSE Arca electronic securities platform on October 28, according to the company’s CEO Tad Park. Under the ticker code BTCR, the ETF will be accessible for trading at market open.
BTCR will begin trading at $21, a tribute to Bitcoin’s limited quantity of 21 million coins. The ETF is employing a management strategy influenced by PlanB’s Bitcoin Stock-to-Flow (S2F) model, a prominent quantitative model aimed at predicting BTC price, according to the business.
“We use the well-known Stock-to-Flow model as one input to figure out how and when Bitcoin’s mining supply shock due to planned halvings would effect its price.” “We might change our mining-related exposure based on what we’re seeing,” Volt Equity added.
Volt Equity’s product, which was approved by the US Securities and Exchange Commission (SEC) in early October, is not a pure Bitcoin ETF since it is based on firms with considerable Bitcoin exposure.
MicroStrategy, Tesla, Twitter, Square, Coinbase crypto exchange, and Bitcoin mining businesses including Canaan, Bitfarms, and Riot Blockchain are among the “Bitcoin Industry Revolution Companies” tracked by the ETF. Based on research, data, and models like the S2F, Volt Equity will assess the fund’s holdings and allocations on a regular basis “when appropriate.”
“Bitcoin isn’t just a currency; it’s a revolution that includes miners, businesses that use it on their balance sheets, and regular HODLers who want to own the first digital store of wealth that can’t be inflated away by a government,” Park added.
Related: SEC Chair Gary Gensler is genuinely pro-Bitcoin, according to Volt Equity CEO
The new ETF comes only days after the NYSE Arca registered a Bitcoin futures-linked ETF by investing firm ProShares on Oct. 19. ProShares’ Bitcoin Strategy ETF was the first Bitcoin futures-linked ETF to debut in the United States, as previously reported.
Bitwise Asset Management, a large cryptocurrency firm, filed to the SEC in mid-October to establish a pure Bitcoin ETF on NYSE Arca. The SEC has yet to approve an ETF that tracks the price of Bitcoin directly.
AXS Investments, a major asset management business, applied for two Bitcoin futures ETFs on Oct. 27. Grayscale Investments, a large crypto investing business, anticipates the SEC to approve its spot Bitcoin ETF by July 2022, according to Bloomberg senior ETF analyst Eric Balchunas.
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