First Ever ‘Bitcoin on Balance Sheet’ ETF Approved by SEC
Takeaways~
- SEC has approved ETF explicitly curated with companies holding a significant amount of Bitcoin
- The firms hold a majority of their net assets in Bitcoin or Bitcoin-related revenue
- The closest thing to a Bitcoin ETF you can get
On Thursday, the SEC approved an ETF that appears to take us one step closer to the highly-anticipated Bitcoin ETF. The approval is a good sign that regulators are becoming ever more acquiescent of crypto. The ETF which was approved consists “of firms holding large amounts of Bitcoin on their balance sheets.” The ETF can be considered a “Bitcoin on Balance Sheet” ETF. Named the “Volt Crypto Industry Revolution and Tech ETF’, the product will give ” investors exposure to about 30 different companies including Tesla, Coinbase, Square, and PayPal.”
This approval is apparently very bullish according to industry veterans. Tad Park, the founder of Volt, which is offering the ETF said: “a year ago, an ETF like this wouldn’t have been possible, we hope this is a crack in the dam”. He went on to say that he was excited about “launching an ETF that could take advantage of the coming bitcoin revolution.”
It may not be a Bitcoin ETF, but if the SEC is approving ETFs called titled ‘Crypto Industry Revolution’, we are on the right track. It displays that the demand is so high for Bitcoin that a company decided to compile every major company holding Bitcoin on their balance and offer an ETF of those companies.
Rumors of a Bitcoin ETF in Q4 have been circling, with many suspecting it will be the ignition that drives Bitcoin to $100,000. We have reported on analysts in August saying October would be the month for the ETF approval. Bloomberg’s Senior ETF analyst Eric Balchunas was one of those who predicted October. Eric recently updated the odds of which day the ETF will be announced on, putting 2-1 odds on October 18th. It appears he has some information to put such good odds on one day.
Yes, the SEC has kicked can on bitcoin ETF approval BUT that is for the physically-backed ones under '33 Act. The futures ETFs filed under the '40 Act (which Genz loves) are very much alive and likely on schedule (we think 75% chance approved in Oct). Here's our odds: https://t.co/cSZ8aDsITl pic.twitter.com/DUEvRANvO7
— Eric Balchunas (@EricBalchunas) October 2, 2021
This ‘Bitcoin balance sheet’ ETF being approved this week is an indicator that the Bitcoin ETF can’t be too far away. According to reporting, “Investors are hoping that this indirect Bitcoin exposure approval by the SEC can push the needle for other Bitcoin futures ETFs and direct crypto holding ETFs.” Again, it is important because it shows the SEC is “putting their regulatory permits where their mouth is”. Market insider called the approval “the closest thing to a US Bitcoin ETF you can buy.”
The ETF will also apparently “look at indicators such as the Stock-to-Flow model.” It will be the first-ever ETF that is Bitcoin-focused, and as Volt’s founder said: “no one has ever done this before.” As US Bank recently said, Bitcoin can no longer be ignored. It appears the SEC is finally realizing it, too.
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