Instead of being a vanilla 1:1 Bitcoin tracker, BTCR seeks to provide active management on top of “Bitcoin revolution companies” and tech companies. Plus, an options overlay to potentially boost performance in extreme run-ups.
SAN FRANCISCO -- Volt Equity (voltequity.com) launched their Volt Crypto Industry Revolution & Tech ETF (symbol: BTCR) — the first actively managed ETF focused primarily in Tech companies & “Bitcoin revolution companies” (i.e. companies that have the majority of their net assets or revenue coming from Bitcoin).
Against the backdrop of a recent flood of Bitcoin futures ETFs, BTCR brings a fresh twist. Instead of seeking vanilla 1:1 correlation with Bitcoin (like the futures ETFs), BTCR emphasizes its active management approach and options overlay strategy that can potentially boost performance in upward spikes in the underlying companies.
“With Bitcoin’s volatility and historical boom-bust cycles, having someone manage your Bitcoin-related investments is desirable, but out of reach for many,” says Tad Park, CEO of Volt Equity. “With BTCR, we want to make premier crypto-related management accessible in the form of an ETF.”
Since Bitcoin is different from traditional asset classes, Volt Equity believes it requires a different management style. For example, baked into Bitcoin’s code is what’s known as “the halving,” where mining is set to become twice as hard every ~4 years. Given that, Volt Equity consults PlanB’s stock-to-flow model as one input to understand how Bitcoin’s mining supply shock could affect Bitcoin’s price. In turn, Volt Equity could use such research to adjust its mining-related exposure accordingly.
But perhaps the most powerful weapon in Volt Equity’s management arsenal are the options strategies it employs. Most notably, BTCR’s call options on companies with the strongest Bitcoin price correlation give BTCR the potential to not just match, but even outperform the underlying companies in extreme run-ups.
All of this is done with a focus on the Bitcoin industry — companies with exposure to Bitcoin and its supporting infrastructure. “We believe Bitcoin is not just a coin. It’s a revolution” says Park. “We’re excited that BTCR can be part of the revolution by helping to bring wealth management into the Bitcoin industry”
Volt Equity LLC is a Registered Investment Adviser. For more information, visit www.voltequity.com.
Investors should consider the investment objectives, risks, charges, and expenses of the Exchange Traded Fund (ETF) before investing. To obtain the prospectus, containing this and other information about the ETF, please call 800-773-3863 or visit voltfunds.com. Please read the prospectus before investing. Holdings are subject to change and risk.
Stock-to-Flow: The Stock-to-Flow model evaluates the current stock of bitcoin against the flow of new bitcoin mined that year.
An investment in the Volt Crypto Industry Revolution and Tech ETF is subject to investment risks, including the possible loss of some or the entire principal amount invested. There can be no assurance that the Fund will be successful in meeting its investment objective. Investment in the Fund is also subject to the following risks (among others): Bitcoin Exposure Risk: The companies in which the Fund invests and the Fund’s indirect investment in bitcoin remain subject to volatility experienced by the cryptocurrency exchanges and other cryptocurrency trading venues. Such volatility can adversely affect an investment in the Fund. Option Risk: As the buyer of a put or call option, the Fund risks losing the entire premium invested in the option if the Fund does not exercise the option. Single Issuer Investment Risk. The Fund focuses its assets (i.e., invests up to 25% of its assets)in securities of a single issuer and, as a result, the Fund may be subject to greater volatility with respect to its portfolio securities than a Fund that is more broadly diversified. More information about these risks and others can be found in the Fund’s prospectus.
Distributor: Capital Investment Group, Inc., Member FINRA/SIPC. There is no affiliation between Volt Equity LLC, including their principals, and Capital Investment Group, Inc.
Media contact: David Kim