Bitcoin (CCC:BTC-USD) exchange-traded funds (ETFs) are one of the hottest trends right now in investing. It seems that those who have held out on directly buying the leading cryptocurrency are looking at Bitcoin ETFs as a way in. Without the hassle of finding an exchange or wallet, while also avoiding some of the risk and volatility, a new class of ETFs has become appealing. Today, a new Bitcoin-related ETF joins the pack, in the form of the Volt Equity ETF (NYSE:BTCR).
As the BTCR ETF goes live today, investors want to know what to expect. Here’s everything you need to know about the Volt Equity ETF as it lands on Wall Street this morning.
Volt Equity’s BTCR ETF Stands Out With Unique Algorithm
- Much like its slightly older peers the ProShares Bitcoin Strategy ETF (NYSE:BITO) and the Valkyrie Bitcoin Strategy ETF (NASDAQ:BTF), the Volt Equity ETF deals in tracking Bitcoin prices. However, rather than dealing in futures contracts, BTCR offers exposure to cryptocurrency through assets tied to the market, like miners and crypto-centric tech plays. It lauds itself as “the first Bitcoin industry focused ETF.”
- Some of the stocks which investors will be exposed to through the Volt Equity ETF include miners like Marathon Digital (NASDAQ:MARA) and crypto exchange Coinbase (NASDAQ:COIN), as well as companies like MicroStrategy (NASDAQ:MSTR). MSTR doesn’t directly work with Bitcoin, but has a significant amount of BTC on its balance sheet.
- Another thing that differentiates BTCR from the pack is its unique price prediction algorithm, stock-to-flow.
- Stock-to-flow, or S2F, is a Bitcoin price-predicting algorithm. It is the product of pseudonymous crypto analyst PlanB.
- S2F predicts the future price of Bitcoin by measuring its scarcity of supply.
- The model closely follows some measures of gold prices; according to PlanB, the analyst was invested in gold trading before moving to the crypto space and creating S2F.
- By offering S2F as its price-predicting measure, Volt is combining price prediction with a more traditional type of fund. It will use the S2F algorithm to help it manage its assets, increasing or decreasing exposure to different areas of the market given the coin’s scarcity.
- BTCR is listing on the New York Stock Exchange today. The listing comes after its filing back in June.
- Its initial listing price is $21 dollars, a nod to Bitcoin’s 21 million BTC supply.
- Since listing this morning, BTCR is beginning to move, with prices of the ETF up about 2%.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.