By Shelly Melancon (Switzerland)
The NYSE continues to offer exchange-traded funds (ETFs) that are tied to Bitcoin (BTC), with Volt Equity being the newest firm to register such an item on the stock market’s main exchange. Volt Equity’s Crypto Industry Transformation and Technology ETF will make its premiere on the digital securities exchange NYSE Arca on October 28. Volt Equity’s CEO, Tad Park, confirmed this. The ETF, which will trade under the trade name BTCR, will be accessible for exchange at the start of the market.
The opening price of BTCR will be $21, which is an homage to Bitcoin’s limited quantity of 21 million units. Per the firm, the ETF is using a management framework influenced by PlanB’s Bitcoin Stock-to-Flow (S2F) system, which is a prominent statistical model intended to anticipate the value of Bitcoin (BTC). “With the use of the well-known Stock–to–Flow model, we can determine whether or not the mining supply shock caused by the scheduled halving will have an impact on Bitcoin’s value and when it will do so. We could alter our exposure to mining-related risks in light of what we’re seeing, if necessary”- Volt Equity said.
Volt Equity’s offering, which was authorized by the US Securities and Exchange Commission (SEC) in early October, is not a pristine Bitcoin ETF because it is based on firms that have considerable exposure to cryptocurrency. The ETF invests in companies involved in the Bitcoin Sector Transformation, including Square, Twitter, Tesla, Michael Saylor’s MicroStrategy, the Coinbase cryptocurrency exchange, and Bitcoin mining firms like Bitfarms, Canaan, and Riot Blockchain, among others. Following studies, information, and models such as the S2F, Volt Equity will assess the fund’s assets and placements regularly and “as necessary.”
Also read:The Pursuit Of BTC Related ETFs
“Cryptocurrency is more than a coin. Crypto is a revolution that includes miners, businesses that use Bitcoin as a part of their income statement, and regular HODLers who wish to hold the world’s first online store of wealth that cannot be pushed away by a state,” according to Park. The recent ETF release comes shortly after the NYSE Arca listed a Bitcoin derivatives-linked ETF by investment firm ProShares on Oct. 19, which was the first time the exchange has done so.
The ProShares Bitcoin Futures ETF, which was previously reported, was the first Bitcoin derivatives exchange-traded fund (ETF) to be launched in the United States. In mid-October, a prominent cryptocurrency vehicle, Bitwise Asset Management, applied with the Securities and Exchange Commission (SEC) to launch a 100% Bitcoin ETF on the NYSE Arca. The Commission has not yet authorized an exchange-traded fund (ETF) that would follow the price of Bitcoin precisely.
On October 27, AXS Holdings, a major wealth management company, filed for two BTC derivatives exchange-traded funds (ETFs). The SEC is expected to authorize Grayscale Investments’ spot Bitcoin ETF by July 2022, as per Bloomberg lead ETF expert Eric Balchunas. Grayscale Investment is a significant crypto investing firm.
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