A new crypto Exchange Traded Fund (ETF) proposal has been filed with the Securities Exchange Commission (SEC) by the USCF LLC (United States Commodity Fund). The crypto-ETH named, USCF Crescent Crypto Index Fund (“XBET” or the “Fund”), if approved, will be issued as shares on the NYSE Arca stock exchange.
XBET will reflect the daily changes in percentage terms of the Crescent Crypto Core II Index (the “CCINDX”), less XBET’s expenses. The new “CCINDX” will comprise of Bitcoin [ETH] and Ether [ETH]. The proposal recognized the two cryptocurrencies as a decentralized ledger which is not controlled by any central authority and price of which is determined by the demand and supply of the asset which is limited in number. The percentage distribution of each cryptocurrency will be rebalanced on a monthly basis.
The registration application was filed on 9th May 2019, the copy of which can be obtained here. The application read,
The offering of XBET’s shares is registered with the Securities and Exchange Commission (“SEC”) in accordance with the Securities Act of 1933 (the “1933 Act”).
It comes soon after reports came out this week that the CFTC is “comfortable” with Ethereum based derivatives.
The ETF proposal has outlined the risk disclaimers in bold and caps, which suggests that the initial approval might come only for institutional investors. However, if the demand for crypto ETF might be high among retail investors as well.
AN INVESTMENT IN XBET MAY NOT BE SUITABLE FOR RETAIL INVESTORS. XBET WILL HOLD CRYPTOCURRENCIES AND THEREFORE MAY BE RISKIER THAN OTHER EXCHANGE TRADED PRODUCTS.
This adds to the existing ETF applications filled with the SEC that has been pending for more than a year. The deadline of SEC’s decision is coming near. Nevertheless, after numerous delays, the optimism of the cryptocurrency markets is unshaken towards an approval.
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