SEC approves Vault Equity ETF to provide exposure to bitcoin-centric companies

The United States Securities and Exchange Commission, or SEC, has approved the Vault Crypto Industry Revolution and Tech ETF, which gives investors easy access to companies with significant exposure to Bitcoin (BTC).

The ETF, which was approved on October 5, is intended to track so-called “bitcoin industrial revolution companies”, which define companies that hold most of their total assets in BTC or earn the lion’s share of their income from bitcoin mining. , Given or transacted, according to an SEC filing. Eight percent of the fund’s holdings will be allocated to such plays, Prospectus says. The new ETF ticker symbol will appear on the New York Stock Exchange Arca list under the BTCR.

U.S. securities regulators have been pondering for years whether to approve their first bitcoin ETF. On October 1, the SEC announced that it would delay its decision on four Bitcoin ETFs by 45 days, with Global X Bitcoin Trust, Valkiri XBTO Bitcoin Future Fund, WisdomTree Bitcoin Trust and Cryptoin Bitcoin ETF behind schedule. December 8, December 11 and December 24, respectively

Unlike other Bitcoin ETF proposals, the newly approved Vault Equity Fund does not track the value of Bitcoin or hold assets in its custody. Rather, it seeks exposure to companies that make up a significant portion of their business from bitcoin-related activities. For example, the Vault product is currently the closest thing to US investors for Bitcoin ETFs.

Related: Price hike: Do whales face Bitcoin Future ETF approval?

Speculation is rife that the SEC is on the verge of approving its first pure game Bitcoin ETF, although little has changed. As regulators continue to think about a traditional cryptocurrency Bitcoin ETF, the Bitcoin Future equivalent could be passed next week, According to To Bloomberg analyst Eric Balchunas.

Optimism surrounding possible approvals could contribute to Bitcoin’s significant price rally earlier this week. Major digital currencies rose to $ 55,000 on Wednesday as total market capitalization returned to 1 1 trillion – marking the first such milestone in nearly four months.

The SEC’s discussion of the Bitcoin ETF took much longer than its counterparts in Canada, who have already approved three exchange-traded funds. The objective Bitcoin ETF, which was launched in February, currently has 1.5 1.51 billion in assets under management, according to BBT data.

Evolution Bitcoin ETF and CI Galaxy Bitcoin ETF were launched in February and March, respectively.