Volt Equity’s ETF consults with PlanB’s Bitcoin stock-to-flow model to adjust exposure.
The New York Stock Exchange (NYSE) continues listing Bitcoin (BTC)-linked exchange-traded funds (ETF), with Volt Equity becoming the latest company to debut such a product on the exchange.
Volt Equity’s Crypto Industry Revolution and Tech ETF will debut trading on the electronic securities exchange NYSE Arca on Thursday, the company’s CEO, Tad Park, told Cointelegraph. The ETF will be available for trading at market opening under the ticker symbol BTCR.
BTCR will open at $21, giving a nod to Bitcoin’s capped supply of 21 million BTC. According to the company, the ETF is implementing a management approach informed by PlanB’s Bitcoin stock-to-flow (S2F) model, a major quantitative model intending to predict BTC’s price.
“We consult the famous Stock-to-Flow model as one input to understand how Bitcoin’s mining supply shock due to its scheduled halvings could affect Bitcoin’s price and when. Based on what we’re seeing, we could adjust our mining-related exposure accordingly,” Volt Equity said.
Approved by the United States Securities and Exchange Commission in early October, Volt Equity’s product is not a pure Bitcoin ETF, as it’s based on companies with significant exposure to Bitcoin.
The ETF tracks so-called “Bitcoin Industry Revolution Companies,” including Michael Saylor’s MicroStrategy, Tesla, Twitter, Square, Coinbase crypto exchange, as well as Bitcoin mining companies, such as Canaan, Bitfarms and Riot Blockchain. Volt Equity will regularly review the fund’s holdings and allocations “when appropriate” based on research, data and models like the S2F.
“Bitcoin is not just a coin, it’s a revolution that encompasses miners, companies using it on their balance sheet, and everyday HODLers who want to hold the first digital store of value that can’t be inflated away by a government,” Park said.
The latest ETF launch comes soon after NYSE Arca listed a Bitcoin futures-linked ETF by investment company ProShares on Oct. 19. As previously reported, the ProShares Bitcoin Strategy ETF became the first Bitcoin futures-linked ETF to launch in the United States.
In mid-October, major cryptocurrency fund Bitwise Asset Management also applied with the SEC to list a pure Bitcoin ETF on NYSE Arca. The SEC has not yet approved an ETF that would track Bitcoin’s price directly.
Major asset management firm AXS Investments filed for two Bitcoin futures ETFs on Wednesday. According to senior Bloomberg ETF analyst Eric Balchunas, major crypto investment firm Grayscale Investments expects the SEC to have approved its spot Bitcoin ETF by July 2022.