SEC approved an ETF for Companies holding Large Amounts of Crypto, like Tesla, Twitter & PayPal.
Some time in the past, SEC has denied Bitcoin ETF approval, although it has been approved yet this time, but they're positive sign that it will approved but we don't know how soon that will happen, as people a anticipating the approval that SEC has take my step further to approve funds called Volt Revolution Companies ETF, which will be managed by San Francisco-based Volt Equity, this fund will provide retails investors with exposure to Bitcoin by creating a portfolio of "Bitcoin Revolution Companies" who has significantly large amount of Bitcoin and crypto on their balance sheets.
In its initial application filed in June, Volt said 25% of the fund's assets would be made up of stock in MicroStrategy, a cyber-security company that has been buying large amounts of Bitcoin. But in an interview with Decrypt, Volt founder Tad Park said that percentage could be slightly lower when the fund, which will trade under the ticker symbol BTCR, is listed on the New York Stock Exchange in the next few weeks. source
Before I continue, For those that don't know what ETF means, here is a definition by investopedia
An ETF is an investment vehicle that tracks the performance of a particular asset or group of assets. ... A bitcoin ETF is one that mimics the price of the most popular digital currency in the world. This allows investors to buy into the ETF without going through the complicated process of trading bitcoin itself
Now let's continue, so the ETF's portfolio will consist of 30 companies, which includes Tesla, PayPal, Coinbase, Square, Twitter, Marathon.
Volt founder Tad Park said the "Bitcoin Revolution Fund" will be less volatile, since Bitcoin price doesn't have much effect on companies shares, the annual management fee is quite fair 0.85%. like I stated in the beginning of this post a year ago this ETF approval wouldn't have been possible but bitcoin and cryptocurrency has come a long way.
Lastly, it doesn't seem that Spot market ETF will be approved before a Futures ETF will be approved, reason being that the sentiment around Futures ETF is high. But I don't know for sure, untill an official announcement is made.
Posted Using LeoFinance Beta