Bitcoin breaks $60,000 for the first time since April as crypto ETFs look set for watershed SEC approval

bitcoin cryptocurrency - stock illustration
  • Bitcoin broke the $60,000 level on Friday for the first time since April as investors were encouraged by signs a futures ETF will soon be approved.
  • The SEC is set to allow trading of the first US bitcoin futures ETF next week, Bloomberg reported.
  • The digital coin rose as much as 5% to $60,343.07. It’s now just 7.5% from a record high.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin topped $60,000 for the first time since April on Friday as investors celebrated the prospect of the SEC approving the first US bitcoin futures ETF within days.

The digital asset rose as much as 5% to $60,343.07, according to Bloomberg data, bringing it within 7.5% of its record price of $64,869.78. That takes bitcoin’s year-to-date gains to roughly 107%.

Market sentiment is on the upturn as the SEC is ready to allow the first US bitcoin futures ETF to start trading next week, according to Bloomberg.

Anticipation has been further fuelled by the regulator approving Volt Equity’s ETF last week, according to Will Hamilton, head of trading and research at digital asset management firm TCM Capital.

Volt’s ETF specifically tracks companies that have significant exposure to bitcoin, or generate most of their profit from bitcoin-related activities like mining, lending, or manufacturing mining equipment.

“It’s a small step, but a very promising one,” Hamilton said. “In essence, the SEC has given the nod, from an investor protection point of view, that investing in these heavily crypto-exposed companies is ‘ok’.”

Separately, a direct update from the SEC seems to have contributed to Friday’s moves. The regulator’s investor education Twitter account posted a link to a June notice on Thursday, warning about the risks associated with investing in bitcoin.

“Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits,” the tweet said. Investors interpreted it as signalling the regulator will approve those types of funds at some point next week.

On Wednesday, Russian President Vladimir Putin said he recognizes cryptocurrencies as a means of payment. And Morgan Stanley CEO James Gorman admitted crypto is more than just a fad.

Further, Coinbase proposed creating a special regulator as a potential solution to the lack of regulatory clarity and enforcement in crypto markets, as it believes digital assets need to be treated differently to stocks.

Crypto traders seem to have brushed off comments from JPMorgan boss Jamie Dimon that bitcoin is “worthless,” and Bank of England’s deputy governor Jon Cunliffe warning that the coin could trigger a 2008-level meltdown.

“Instead of scaremongering about bitcoin, certain officials should look closer to home,” said Paolo Ardoino, chief technology officer at trading platform Bitfinex. “The unsustainable inflationary monetary policies of central banks will inevitably unravel.”

Read More: 2 ETF veterans-turned crypto investors break down why they think the SEC should approve a bitcoin ETF that invests in the digital currency itself instead of futures contracts – and share the 3 main pitfalls of a futures-based ETF

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Bitcoin briefly hits $60,000 for the 1st time since April as crypto ETFs look set for watershed SEC approval

bitcoin cryptocurrency - stock illustration
  • Bitcoin touched $60,000 on Friday as investors awaited approval of a futures ETF tracking its price.
  • The SEC is set to allow trading of the first US bitcoin futures ETF next week, Bloomberg reported.
  • The digital coin hit a 24-hour high of $60,018, taking its year-to-date gains to around 104%.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin briefly topped $60,000 for the first time since April on Friday, as investors celebrated the prospect of the SEC approving the first US bitcoin futures ETF within days.

The digital asset hit a 24-hour high of $60,018, according to data from CoinGecko, nearing its record price of $64,895. That takes bitcoin’s year-to-date gains to about 104%.

Market sentiment is on the upturn as the SEC is ready to allow the first US bitcoin futures ETF to start trading next week, according to Bloomberg.

Anticipation has been further fuelled by the regulator approving Volt Equity’s ETF last week, according to Will Hamilton, head of trading and research at digital asset management firm TCM Capital.

Volt’s ETF specifically tracks companies that have significant exposure to bitcoin, or generate most of their profit from bitcoin-related activities like mining, lending, or manufacturing mining equipment.

“It’s a small step, but a very promising one,” Hamilton said. “In essence, the SEC has given the nod, from an investor protection point of view, that investing in these heavily crypto-exposed companies is ‘ok’.”

Separately, a direct update from the SEC seems to have contributed to Friday’s moves. The regulator’s investor education Twitter account posted a link to a June notice on Thursday, warning about the risks associated with investing in bitcoin.

“Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits,” the tweet said. Investors interpreted it as signalling the regulator will approve those types of funds at some point next week.

On Wednesday, Russian President Vladimir Putin said he recognizes cryptocurrencies as a means of payment. And Morgan Stanley CEO James Gorman admitted crypto is more than just a fad.

Further, Coinbase proposed creating a special regulator as a potential solution to the lack of regulatory clarity and enforcement in crypto markets, as it believes digital assets need to be treated differently to stocks.

Crypto traders seem to have brushed off comments from JPMorgan boss Jamie Dimon that bitcoin is “worthless,” and Bank of England’s deputy governor Jon Cunliffe warning that the coin could trigger a 2008-level meltdown.

“Instead of scaremongering about bitcoin, certain officials should look closer to home,” said Paolo Ardoino, chief technology officer at trading platform Bitfinex. “The unsustainable inflationary monetary policies of central banks will inevitably unravel.”

Read More: 2 ETF veterans-turned crypto investors break down why they think the SEC should approve a bitcoin ETF that invests in the digital currency itself instead of futures contracts – and share the 3 main pitfalls of a futures-based ETF

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The SEC is ready to allow bitcoin futures ETFs to start trading next week, report says

Three dimensional render of Bitcoin shining inside mine - stock illustration
  • The first US bitcoin futures ETF is likely to start trading next week, Bloomberg reported late Thursday.
  • It reported the SEC is unlikely to block the products, which would be a “watershed moment for crypto,” an analyst said.
  • Bitcoin hit a six-month-high above $60,000 on Friday, on hopes a bitcoin futures ETF is within reach.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The Securities and Exchange Commission is set to allow the first US bitcoin futures exchange-traded fund to start trading next week, Bloomberg reported late Thursday.

The SEC is not likely to block such products from beginning to trade, the news outlet reported, citing people familiar with the matter.

Four proposed bitcoin ETFs are in line for an October decision from the SEC on whether to approve, deny or delay their submissions. The firms involved – ProShares, Valkyrie Investments, Invesco, and VanEck – are among several applicants waiting for word.

ProShares and Invesco’s proposals are based on futures contracts and filed under a 1940 law that the chairman of the SEC, Gary Gensler, has said provide “significant investor protection” for mutual funds and ETFs.

While pure bitcoin ETFs have not found favor with Gensler, he has sounded more positive about those based on futures contracts for the digital asset.

The SEC green light would be “a watershed moment for the crypto community, as they have been waiting for this since 2018,” Naeem Aslam, chief market analyst at Avatrade, said in a note.

“The reflection of this optimism can also be seen by looking at the bitcoin price, which is only 7% away from its all-time high.”

Bitcoin briefly topped $60,000 for the first time since April on Friday, before slipping to around $59,440. Its price has been gaining over recent days in anticipation of ETF approval, with many expecting it could regain April’s record high of $64,895 before the end of the year.

Firms waiting for a crypto ETF decision from the SEC include Fidelity, WisdomTree, Wilshire Pheonix, VanEck, First Trust SkyBridge, and Valkyrie, as well as ProShares and Invesco.

Whichever fund secures first approval could gain a significant first-mover advantage, as investors seek exposure to the price of the digital asset in their traditional brokerage and retirement accounts.

Tyler and Cameron Winklevoss were the first to try to create a bitcoin futures ETF, without success, in the US in 2013. This year, crypto ETFs were approved in Canada and Europe.

Anticipation that a bitcoin futures ETF is just around the corner has been brewing, given recent developments.

Cathie Wood’s Ark Invest has put its name to an ETF whose SEC application was filed by issuer Alpha Architect on Wednesday. The ARK 21Shares Bitcoin Futures Strategy ETF carries the ticker ARKA, a positive sign of pending regulatory approval, an analyst said.

Some investors are flagging an SEC tweet as another positive signal. The regulator’s investor education office on Thursday posted a link to a June notice that warns about crypto funds.

“Before investing in a fund that holds bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits,” the tweet said.

The SEC last week gave the go-ahead to Volt Equity’s ETF, which tracks stocks with significant exposure to bitcoin – seen as the closest fund to a bitcoin ETF so far.

The SEC didn’t immediately respond to Insider’s request for comment.

Read More: An ultimate guide to 10 top altcoins, their real-world applications, and why investors are betting their tech is the future of crypto

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Coinbase wants Congress to create a special regulator to oversee the crypto market

Coinbase IPO
  • Coinbase wants a special regulator to oversee cryptocurrency markets.
  • The biggest crypto exchange in the US proposed the idea in a regulatory framework released on Thursday.
  • Coinbase argued that it shouldn’t be regulated by the SEC or CFTC, but instead a single designated entity.

Coinbase has suggested Congress create a special regulator just for cryptocurrency markets, according to a new proposal.

“To avoid fragmented and inconsistent regulatory oversight of these unique and concurrent innovations, responsibility over digital asset markets should be assigned to a single federal regulator,” Coinbase said in its “Digital Asset Policy Proposal: Safeguarding America’s Financial Leadership” released Wednesday.

Coinbase – the cryptocurrency exchange that went public in August – said a single federal regulator should be in charge of oversight. That would mean jurisdiction would rest outside entities like the SEC or CFTC. In addition, the company wants Congress to create a self-regulatory organization in order to “strengthen the oversight regime.”

The two would create rules dealing with a range of crypto topics such as digital asset trading, transfer, custody, clearing, settlement, money payment, staking, borrowing and lending, and related incidental services, the company said in its policy proposal.

“This two-tier regulatory structure will ensure efficient and streamlined regulation and oversight, and evolve elements of the existing frameworks to meet the requirements of our new technologically-driven financial system,” Coinbase said.

The policy proposal comes as the government has struggled with how to approach a regulatory framework for cryptocurrencies. And some big investors have stayed away from the asset class as they await more clarity from the government.

“Regulatory certainty in the United States is urgently needed to maintain our leadership in responsible financial innovation,” Michael Piwowar, executive director of the Milken Institute Center for Financial Markets and former Commissioner and acting chairman of the U.S. Securities and Exchange Commission, said in an email.

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Bitcoin futures premium doubles ahead of SEC’s potential approval of an ETF next week

Bitcoin
Bitcoin

  • Bitcoin futures premium has doubled this month as the SEC rules on the potential of approval of several ETFs.
  • SEC Chairman has recently voiced his support for bitcoin ETFs that hold futures contracts rather than directly holding bitcoin.
  • The SEC is set to either approve, deny, or delay bitcoin ETF proposals from four firms over the next two weeks.
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The premium tied to bitcoin futures contracts has doubled this month as investors anticipate the SEC’s potential approval of several bitcoin ETFs over the next two weeks.

The SEC is set to either approve, deny, or delay bitcoin ETF proposals from ProShares, Valkyrie Investments, Invesco, and VanEck, which were all submitted to the regulatory agency in August.

While still wary of a pure bitcoin ETF due to concerns for potential fraud, SEC Chairman Gary Gensler has voiced his support in recent weeks for a bitcoin ETF that buys underlying futures contracts on the cryptocurrency rather than directly buying bitcoin itself.

Since Gensler has made clear his thoughts on the possibility of bitcoin futures-based ETF, several issuers have submitted new ETF applications that would utilize that same approach, including Cathie Wood’s ARK Invest.

With approval of a bitcoin futures ETF looking more likely than ever, the annualized premium of CME bitcoin futures prices over bitcoin’s spot value was 15%, compared to an average of 7.7% over the first nine months of the year, according to the Wall Street Journal.

Given that there could very soon be a surge in demand for bitcoin futures contracts due to the onslaught of new ETFs, the Chicago Mercantile Exchange is planning to raise the limit on the number of bitcoin futures contacts a single firm can hold.

The SEC also seems to be ramping up education about bitcoin futures contracts ahead of their decision on the ETFs later this month. On Thursday, the SEC Investor Education Twitter account shared a link to more information on bitcoin futures and said, “Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.”

Whichever firm receives approval for the first bitcoin futures-based ETF could see a significant first-mover advantage as investors seek exposure to bitcoin in their traditional brokerage and retirement accounts. Bitcoin is up more than 30% so-far in October, and is up just over 100% year-to-date.

Bitcoin price chart
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The SEC doesn’t want to let firms and individuals get by without admitting wrongdoing anymore as part of enforcement actions

NJ Attorney General Gurbir Grewal
Gurbir Grewal directs the SEC’s division of enforcement.

  • The SEC will require companies involved in settling some civil enforcement actions to admit wrongdoing, according to a Wall Street Journal report.
  • The agency that enforces laws against market manipulation largely abandoned admissions of wrongdoing during the Trump administration.
  • But businesses may resist the SEC’s latest shift because admitting violations of the law can lead to other consequences.

The Securities and Exchange Commission will return to a policy of requiring companies involved in settling some civil enforcement actions to admit wrongdoing, according to a Wall Street Journal report on Wednesday.

Such admissions in certain cases will strengthen the deterrent value of enforcement actions and increase public trust in financial and government institutions, said SEC Enforcement Director Gurbir Grewal, who addressed an annual agency conference sponsored by the Practising Law Institute.

“When it comes to accountability, few things rival the magnitude of wrongdoers admitting that they broke the law,” Grewal was quoted as saying by WSJ. “Admissions, given their attention-getting nature, also serve as a clarion call to other market participants to stamp out and self-report the misconduct, to the extent it’s occurring in their firm.”

The agency that enforces laws against market manipulation is returning to a policy started during the Obama administration that was largely abandoned during the Trump administration, the report said.

The SEC in 2013 said it would make companies and individuals admit wrongdoing as a condition of settling civil charges in certain cases. The agency at that time was facing pressure to show it could clamp down on Wall Street abuses after failing to detect practices in mortgage-bond and derivatives markets that contributed to the 2008 global financial crisis.

But businesses may resist the SEC’s latest shift because admitting violations of the law can lead to other consequences. For example, investors or other parties may file litigation claiming they were harmed by wrongdoing.

Meanwhile, the SEC also can refer fraud cases to the Department of Justice which can enforce securities laws through criminal penalties. Fraud is the most serious type of allegation the SEC investigates.

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SEC rule meant to protect retail investors from pump-and-dump schemes ended up giving an edge to professionals

nyse trader
  • A new SEC rule meant to protect retail investors from pump-and-dump schemes has also blocked access to thousands of over-the-counter stocks.
  • The new rule prevents brokers from providing price quotations on OTC stocks that don’t release up-to-date financials.
  • But the rule has also restricted individual investors’ ability to buy stocks of sound companies, giving professional investors an edge.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

A new SEC rule created to protect investors from pump-and-dump schemes has had the unintended consequence of giving professional investors an edge over individual investors since it went into effect at the end of September.

As most pump-and-dump operations take advantage of illiquid, over-the-counter securities that don’t provide current financial information, the rule sought to prevent brokers from providing price quotations on securities that don’t have up-to-date financials.

Technological advancements related to the rule change “enable us to require that information in the OTC market be more timely, enabling investors to make better informed investment decisions, and reducing fraud in these markets where retail presence is significant and, unfortunately, pump-and-dump and other frauds are too common,” former SEC Chairman Jay Clayton said last year.

Of the more than 12,000 securities that trade on the OTC Markets, more than 2,000 of them are currently subject to the price-quotation limitation.

But while the rule change might make it harder for schemers to inflate stock prices with false or misleading information and then dump shares on unwitting investors, it also makes it nearly impossible for retail investors to buy OTC securities of profitable, dividend-paying businesses that don’t post updated financials.

That has led to a drop in demand for many OTC securities, resulting in sharp declines in stock prices. Retail investors that hold an OTC stock that now falls under the new SEC rule are only left with the option of selling their security, not buying more.

One OTC security that saw a big drop after the rule went into effect was Canandaigua National, an upstate New York community bank that is profitable and offers a 4% dividend yield. The stock, which barely traded hands even before the rule change, saw its price fall 27% virtually over night.

“We find ourselves in a situation where there are real opportunities sitting in front of us, but we can’t take advantage of them!” retired investor Dave Wetzel told The Wall Street Journal.

But professional investors can still buy OTC stocks that fall under the SEC rule, which is meant to protect individual investors who may have access to less information.

And David Waters of Alluvial Capital Management is doing just that. “It’s created an opportunity for professionals at the expense of retail investors. It’s an unfair transfer of value,” Waters told The Wall Street Journal.

Read the original article on Business Insider

An SEC rule meant to protect retail investors from pump-and-dump schemes ended up restricting access to markets, giving an edge to professionals

nyse trader
  • A new SEC rule meant to protect retail investors from pump-and-dump schemes has also blocked access to thousands of over-the-counter stocks.
  • The new rule prevents brokers from providing price quotations on OTC stocks that don’t release up-to-date financials.
  • But the rule has also restricted individual investors’ ability to buy stocks of sound companies, giving professional investors an edge.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

A new SEC rule created to protect investors from pump-and-dump schemes has had the unintended consequence of giving professional investors an edge over individual investors since it went into effect at the end of September.

As most pump-and-dump operations take advantage of illiquid, over-the-counter securities that don’t provide current financial information, the rule sought to prevent brokers from providing price quotations on securities that don’t have up-to-date financials.

Technological advancements related to the rule change “enable us to require that information in the OTC market be more timely, enabling investors to make better informed investment decisions, and reducing fraud in these markets where retail presence is significant and, unfortunately, pump-and-dump and other frauds are too common,” former SEC Chairman Jay Clayton said last year.

Of the more than 12,000 securities that trade on the OTC Markets, more than 2,000 of them are currently subject to the price-quotation limitation.

But while the rule change might make it harder for schemers to inflate stock prices with false or misleading information and then dump shares on unwitting investors, it also makes it nearly impossible for retail investors to buy OTC securities of profitable, dividend-paying businesses that don’t post updated financials.

That has led to a drop in demand for many OTC securities, resulting in sharp declines in stock prices. Retail investors that hold an OTC stock that now falls under the new SEC rule are only left with the option of selling their security, not buying more.

One OTC security that saw a big drop after the rule went into effect was Canandaigua National, an upstate New York community bank that is profitable and offers a 4% dividend yield. The stock, which barely traded hands even before the rule change, saw its price fall 27% virtually over night.

“We find ourselves in a situation where there are real opportunities sitting in front of us, but we can’t take advantage of them!” retired investor Dave Wetzel told The Wall Street Journal.

But professional investors can still buy OTC stocks that fall under the SEC rule, which is meant to protect individual investors who may have access to less information.

And David Waters of Alluvial Capital Management is doing just that. “It’s created an opportunity for professionals at the expense of retail investors. It’s an unfair transfer of value,” Waters told The Wall Street Journal.

Read the original article on Business Insider

The SEC is taking a hard line on stablecoins right now – but it could permit more coin issuers if it gets to regulate them, a financial policy expert says

GettyImages 175048059
SEC Chair, Gary Gensler.

  • The range of stablecoin issuers could widen if the SEC becomes regulator, despite its tough stance on the cryptos.
  • A fight is brewing between the SEC and the Federal Reserve over which will oversee stablecoins, a senior Cowen analyst said.
  • If the Fed wins, big banks will have an advantage in stablecoin issuance, Jaret Seiberg said in a note.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The Securities and Exchange Commission is taking a hard line on stablecoins right now – but if it ends up regulating the asset-backed cryptocurrencies, that could mean a far greater range of these coins on offer.

That’s the view of Jaret Seiberg, a DC-based financial services policy analyst at Cowen, who noted the government agency has a tough rival for the oversight role.

“We see a fight brewing between the Federal Reserve and SEC over which will regulate stablecoins,” Seiberg said in a note this week.

The boom in crypto assets’ popularity over the past year has regulators training their sights on potential risks to investors and to the financial system.

Gary Gensler, chairman of the SEC, has likened stablecoins to “poker chips” at the casino in the “Wild West” crypto market. Stablecoins are cryptocurrencies backed by fiat money such as the US dollar, or by traditional assets with stable value.

Tether and Circle, the two biggest stablecoins by market capitalization, have taken regulatory heat recently, with the SEC issuing an investigative subpoena to Circle this summer.

Gensler and Fed Chair Jerome Powell were among top officials – including Treasury Secretary Janet Yellen – who hinted at tightening the rules around stablecoins when they met to discuss tether in July.

The SEC boss has said some stablecoins may well be securities. Meanwhile, the Fed chief has said stablecoins are like money market funds, or bank deposits.

If the SEC wins the fight for oversight, it would treat stablecoins like prime money market mutual funds, or MMMFs, which come with liquidity requirements and redemption limits, according to Cowen.

“We believe there will be a greater diversity of stable coin issuers if the SEC prevails. Many entities from asset managers, to banks to securities firms could be issuers,” Seiberg said.

The Fed will take a bank-regulatory approach, according to Cowen. Stablecoins would become another deposit product, with the usual bank rules and Community Reinvestment Act obligations.

“If the Federal Reserve wins this fight, then we expect big banks to have the advantage when it comes to stable coin issuance,” Seiberg said.

The Biden administration appears to support the Fed’s approach, as it has been pushing Congress to create a bank-like charter for stablecoins. It has urged the Financial Stability Oversight Council to look into stablecoin-related risks to the financial system.

Cowen expects the FSOC to deem stablecoins “systemically important,” paving the way for the Fed to oversee them like banks. The central bank has a key ally in Yellen, a former Fed boss who now chairs the FSOC.

“This is not the first power struggle between the two. They fought in the 1990s to be the umbrella regulator of financial firms. The Fed won that battle,” Seiberg said.

Cowen believes the SEC has the edge because the markets regulator is seen as having the simplest path to bringing in a regulatory regime.

“The FSOC process has been cumbersome, and Congress rarely acts,” Seiberg said about the Fed’s path.

By contrast, the SEC may be able to treat stablecoins as securities, clearing the way for rules like those for money market mutual funds.

Whichever way it goes, there’s little real difference for stablecoins between the two regulatory regimes, according to Cowen. Either would boost confidence.

“To us, both options should reassure investors that stablecoins are fully backed by US dollars. That should limit the risk of a run,” Seiberg said

Read More: These 20 stocks are set to grow earnings by at least 20% in 2022, Goldman Sachs says – even as broader market growth slows and taxes rise

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The SEC just approved the closest thing to a US bitcoin ETF you can buy, for now

In this photo illustration, a visual representation of the digital Cryptocurrency, Bitcoin is displayed in front of the Bitcoin course's graph on June 25, 2019 in Paris, France.
  • The US SEC has approved an ETF that tracks stocks with significant exposure to bitcoin.
  • These firms hold a majority of their net assets in bitcoin or derive a majority of their profit or revenue from bitcoin-related activities.
  • The actively-managed fund, Volt Crypto Industry Revolution and Tech ETF, was approved on October 5.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

A new exchange-traded fund may be as close as investors can get to having a US bitcoin ETF – at least for now.

The US Securities and Exchange Commission has approved Volt Equity’s ETF, which aims to track companies that hold a majority of their net assets in bitcoin or derive a majority of their profit or revenue from bitcoin-related activities like mining, lending, or manufacturing mining equipment, Tad Pak, CEO of the fund, told Insider.

He calls these “bitcoin revolution companies,” and is eyeing MicroStrategy, Marathon Digital Holdings, and Bitfarms, among others, for the actively managed fund.

Volt Crypto Industry Revolution and Tech ETF was approved on October 5 and will trade under the ticker BTCR. The news was first reported by New York Times DealBook. Pak told Insider he hopes to go public in the New York Stock Exchange in the next three weeks.

“I’m a strong believer in bitcoin and was really excited about launching an ETF that could take advantage of the coming bitcoin revolution,” he told Insider. “We can get exposure to bitcoin without necessarily holding the coin, especially with options positions.”

This roundabout investing strategy is necessary because the SEC under Chair Gary Gensler has been putting off approving bitcoin ETFs – with nearly two dozens stuck in limbo – amid fears of potential for market manipulation. The US thus far has not approved a single one yet, though Gensler did recently note that he is more open to a bitcoin futures ETF. In Canada, however, bitcoin ETFs are available now.

As a result, the Volt ETF will not directly invest in bitcoin. Instead, it looks to put at least 80% of its net assets in “bitcoin revolution companies,” options, and ETFs with exposure to those companies. The rest will go in broad equity markets to offset the risk of the portfolio.

The ETF will also look at indicators such as the Stock-to-Flow model, which evaluates the current stock of bitcoin against the flow of new bitcoin mined that year.

Pak said this is the first ETF that is bitcoin-focused, compared to others that invest in a broader range of digital assets.

“It seems like it’s not a big deal, but no one’s ever done that before,” he told Insider.

The fund is the fifth ETF that San Francisco-based Volt Equity has launched. But Pak said it was by far the hardest, noting repeated back and forth with the SEC.

While the reason for the numerous delays is unclear, Pak, a retail tech investor, speculated it was because the fund’s initial name was Volt Bitcoin Revolution ETF.

“It was very difficult to get this through, but we’re really glad that they finally approved it,” he noted.

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