Volt Equity founder believes that United States regulators have good reason to be slow to approve a pure Bitcoin (BTC) -related Exchange Traded Fund (ETF).
Volt Equity CEO and founder Tad Park supported the U.S. Securities and Exchange Commission regarding the regulator’s unwillingness to approve an ETF that would directly track Bitcoin.
In an interview with Fox Business on Tuesday, Park argued that SEC chairman Gary Gensler “is actually pro-Bitcoin” but is also “a little misunderstood” when it comes to his view of crypto regulation in the United States.
Park explicitly referred to the SEC’s investor protection concerns, namely that crypto custody providers still have to assure the Commission that they can actually guarantee adequate asset protection:
“I can say, ‘I have a gold ETF or a Bitcoin ETF,’ but I keep this gold in my basement. Will the SEC allow that? Probably not. If companies can’t prove they can keep it and address many of the issues Gensler specifically mentioned, it won’t work. “
The CEO added that “at least half” of current crypto ETF filings with the SEC are “not even valid” because “they don’t address what Gary Gensler says”.
Park stressed that Volt Equity’s crypto ETF does not offer direct exposure to Bitcoin, but instead tracks large Bitcoin-related companies like MicroStrategy, Tesla, Twitter, Square, as well as Bitcoin mining companies like Bitfarms.
“We’re trying to get what people are actually looking for, which is the correlation to Bitcoin’s price movement. These companies really focus on Bitcoin and get the majority of their revenue and earnings from Bitcoin. It makes sense that they tend to move with the price of Bitcoin, ”noted Park.
Related: Bitcoin futures ETF is likely to be postponed until 2022, research firm CFRA says
Volt Equity’s Volt Crypto Industry Revolution and Tech ETF was approved on October 1st.
The SEC has yet to approve a pure Bitcoin ETF. On October 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 may be open to approving Bitcoin futures ETFs.