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.
Do you think that the Crypto-ETF approvals will be passed this summer? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com