Recent years have seen Bitcoin increasingly recognized as a mainstream investment asset. Market participants have eagerly awaited the arrival of a Bitcoin ETF in the United States to facilitate easier access to Bitcoin investments. According to recent reports, the U.S. Securities and Exchange Commission (SEC) has approved the first Bitcoin-related ETF—a significant milestone that's generating considerable buzz in the crypto community.
SEC Approves Bitcoin-Linked ETF
On October 5, the actively managed Volt Crypto Industry Revolution and Tech ETF (BTCR) received SEC approval. The ETF is set to list on the New York Stock Exchange under the ticker BTCR, with an annual expense ratio of 0.85%.
How BTCR Works
Unlike a direct Bitcoin ETF (which remains unapproved due to regulatory concerns), BTCR does not hold Bitcoin directly. Instead, it invests in companies that:
- Derive a significant portion of their assets or revenue from Bitcoin-related activities (e.g., mining, lending, trading, or mining equipment manufacturing).
- Provide indirect exposure to Bitcoin’s price movements.
Volt Equity CEO Tad Pak stated that BTCR could debut on the NYSE within the next three weeks.
SEC’s Stance on Cryptocurrency
SEC Chair Gary Gensler has maintained a cautious approach toward crypto ETFs, citing concerns such as:
- Extreme price volatility
- Market manipulation risks
- Insufficient liquidity
Gensler has emphasized that cryptocurrencies must be treated as securities under SEC oversight to ensure investor protection and transparency.
Bitcoin ETFs in Other Markets
While the U.S. awaits its first pure Bitcoin ETF, Canada has already embraced the trend with three registered Bitcoin ETFs:
- Purpose Bitcoin ETF (Launched Feb. 2021, AUM: $1.51B)
- Evolve Bitcoin ETF (Feb. 2021)
- CI Galaxy Bitcoin ETF (Mar. 2021)
These ETFs have provided Canadian investors with regulated exposure to Bitcoin’s price movements.
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FAQs
Why hasn’t the SEC approved a pure Bitcoin ETF yet?
The SEC remains concerned about Bitcoin’s volatility, potential manipulation, and lack of investor protections in unregulated markets.
What’s the difference between BTCR and a Bitcoin ETF?
BTCR invests in Bitcoin-related companies rather than holding Bitcoin directly, making it a Bitcoin-concept ETF, not a true spot Bitcoin ETF.
Which countries already have Bitcoin ETFs?
Canada leads with three Bitcoin ETFs, while the U.S. has only approved Bitcoin futures ETFs and concept-based funds like BTCR.
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What are the risks of investing in BTCR?
Since BTCR doesn’t track Bitcoin’s price directly, its performance depends on Bitcoin-related stocks, which may not perfectly correlate with Bitcoin’s value.
Will the SEC approve a pure Bitcoin ETF soon?
While BTCR’s approval signals progress, SEC Chair Gensler has not indicated imminent approval for a spot Bitcoin ETF.
How does BTCR compare to Canadian Bitcoin ETFs?
Canadian ETFs like Purpose Bitcoin ETF hold actual Bitcoin, offering direct exposure, whereas BTCR provides indirect exposure via equities.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.
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