US SEC approves Volt Equity’s crypto stock ETF


The US SEC is yet to approve a cryptocurrency ETF, but it is considering those that indirectly track the performance of the coins
The United States Securities and Exchange Commission (SEC) has approved a crypto stock exchange-traded fund (ETF). The ETF is set to track the performance of cryptocurrency companies, allowing investors to gain indirect exposure to the crypto market.
According to the SEC’s prospectus filed on the first of this month, the regulatory agency has approved the Volt Crypto Industry Revolution and Tech ETF. Per the document, the ETF will track the performance of Bitcoin companies currently listed on the stock exchange.
The ETF will track the performance of companies that hold a majority of their net assets in cryptos like Bitcoin, such as MicroStrategy (NASDAQ: MSTR), or entities that make most of their profits via cryptocurrency mining or manufacturing mining equipment, such as Marathon Digital Holdings (NASDAQ: MARA).
The document revealed that roughly 80% of the ETF’s assets would be invested in the cryptocurrency stocks, while the remaining 20% will be invested in traditional stocks. This is to offset the risks that cryptocurrency investments will pose to the fund’s portfolio. However, the fund will not directly hold any cryptocurrencies.
The US SEC has been reluctant to approve any cryptocurrency ETFs. The SEC is wary of approving an ETF that directly tracks the performance of Bitcoin or other cryptocurrencies or invests in them. The SEC chair, Gary Gensler, has stated on numerous occasions that he favours Bitcoin futures ETFs over actual Bitcoin ETFs.
Despite that, the US SEC is yet to approve any of the numerous crypto ETF or crypto futures ETF applications on the table. The regulatory agency continues to review the applications and is expected to give its verdict on some of them by the end of the year.
Meanwhile, Canada and Brazil are ahead of other countries after approving a few cryptocurrency ETFs earlier this year. Their actions have attracted numerous foreign institutional investors seeking to gain exposure to Bitcoin and other cryptocurrencies via ETFs.

Keep updated with our round the clock and in-depth cryptocurrency news.
Unsub anytime
No SPAM ever!
After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.
Please be aware that some of the links on this site will direct you to the websites of third parties, some of whom are marketing affiliates and/or business partners of this site and/or its owners, operators and affiliates. We may receive financial compensation from these third parties. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services.
Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.
CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.
When trading in stocks your capital is at risk.
Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.


Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

Warp Finance loses $8 million due to a flash loan attack

Next Post

Over 100,000 ETH has been burned since the London hard fork

Related Posts