The ETF will only track companies that have 80% or more of their net assets in Bitcoin

The US Securities and Exchanges Commission (SEC) has approved an exchange-traded fund (ETF) set to provide exposure to companies whose net assets and revenue are mainly from Bitcoin or BTC-related activities.

The ETF will only track companies with substantial Bitcoin holdings.

The fund, Volt Blockchain Industry Revolution and Tech Exchange Trade Fund, was approved by the Board of Directors on October 5.

Bitcoin-focused companies

According to a prospectus filed with the SEC, the actively managed ETF will track both US and foreign-based companies, with examples of potential inclusions being MicroStrategy, BitFarms and Marathon Digital Holdings.

The ETF is not able to invest in Bitcoin (BTC) directly. However, it will provide exposure through Bitcoin-centric companies, with 80% or more of net assets in such firms. The fund will also look at investing 20% or less in the equity markets to offset risks associated with the crypto-focused portfolio.

Volt Equity founder and CEO Tad Park is the fund’s portfolio manager, having founded the company in 2020. Park was previously a senior software engineer at Silicon Valley-based Sonder Corp .

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He told Business Insider that his motivation for creating the fund was his strong belief in Bitcoin and he wanted an ETF that would allow investors to exploit the opportunity crypto provides.

“We can get exposure to bitcoin without necessarily holding the coin, especially with options positions,” Park added.

The firm filed the first ETF application in June 2021,. This approval came just days after the SEC had delayed the approval of a Bitcoin ETF.