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Volt recently received approval for an ETF that includes stocks in various crypto-related companies.
The founder of Volt Equity believes that United States regulators have a fair reason to be slow in approving a pure Bitcoin (BTC)-related exchange-traded fund (ETF).
Volt Equity CEO and founder Tad Park voiced support for the U.S. Securities Exchange Commission regarding the regulatorâs unwillingness to approve an ETF that would track Bitcoin directly.
In a Tuesday Fox Business interview, Park argued that SEC Chair Gary Gensler âactually is pro-Bitcoinâ but is also âa little bit misunderstoodâ regarding his perspective on crypto regulation in the United States.
Park specifically referred to the SECâs investor protection concerns, namely that crypto custody providers have yet to assure the commission that they can actually ensure proper asset protection:Â
âI can say âI have a gold ETF or a Bitcoin ETF,â but Iâm storing that gold in my basement. Is the SEC gonna allow that? Probably not. Unless companies can show they can custody it and actually address a lot of the issues Gensler specifically mentioned, itâs not gonna work.â
The CEO added that âat least halfâ of current crypto ETF applications with the SEC âare not even validâ because âthey are not addressing what Gary Gensler is saying.â
Park emphasized that Volt Equityâs crypto ETF does not provide direct exposure to Bitcoin but instead tracks major Bitcoin-correlated companies, including MicroStrategy, Tesla, Twitter, Square, as well as Bitcoin mining companies such as Bitfarms.
âWe try to get at what people are actually looking for, which is correlation to Bitcoinâs price movement. These companies are really focusing on Bitcoin and get the majority of their income and revenues from Bitcoin. It makes sense that they tend to move along with Bitcoinâs price,â Park noted.
Related: Bitcoin futures ETF will likely be delayed until 2022 says research firm CFRA
Approved on Oct. 1, Volt Equityâs Volt Crypto Industry Revolution and Tech ETF tracks âBitcoin Industry Revolution Companies,â a list of firms holding a majority of their net assets in Bitcoin or derive a majority of their earnings from Bitcoin mining, lending or transactions.
The SEC has yet to approve a pure Bitcoin ETF. On Oct. 1, the SEC extended the deadline for four Bitcoin ETFs, including Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust and Kryptoin Bitcoin ETF. In August, Gensler suggested that the regulator might be open to approving Bitcoin futures ETFs.
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