A registration statement for a new Exchange Traded Fund (ETF), which will invest alongside other traditional investments in Bitcoin futures, has been filed with the US Securities and Exchange Commission (SEC). The fund's portfolio includes Bitcoin futures traded on the Cboe Futures Exchange and the Chicago Mercantile Exchange, as well as sovereign debt and money market funds.
Also read: Supreme Court in India moves to crypto-hearing, community calls for positive regulations
New ETF submission
Reality Shares ETF Trust filed a registration statement with the US Securities and Exchange Commission on Monday for an ETF that will invest in Bitcoin futures as part of its investment strategy. The Reality Shares Blockforce Global Currency Strategy ETF is an actively managed fund listed on the NYSE Arca Stock Exchange. The fund is "designed to provide exposure to global currencies, both in currencies and in virtual currencies," it says.
The newly proposed ETF invests in a portfolio of "high-quality, short-term (no more than 18 months maturity) government bonds" traded on US stock exchanges in US dollars, euros, British pound and Japanese yen and Swiss francs. According to the notification, it will also invest in "Bitcoin Futures Contracts with various maturities admitted to trading on US stock exchanges which are a risk to Bitcoin's price movements" and in "Money Market Funds and / or other cash equivalents".
Invest in Bitcoin futures
The Registration Statement for the ETF Details on Reality Shares Blockforce Global Currency Strategy:
The Fund plans to invest in Bitcoin futures traded on the Cboe Futures Exchange Llc … and / or the Chicago Mercantile Exchange (CME). In the future, however, he may also invest in Bitcoin futures traded on other exchanges.
In addition, the fund expects to invest in Bitcoin futures by investing up to 25 percent of its total assets in a wholly-owned and controlled subsidiary of the Cayman Islands. The application states that the Investment Adviser of the Fund "wishes to limit the investments of the Subsidiary in Bitcoin Futures so that the total notional exposure of the Fund to Bitcoin futures at the time of investment is limited to 15% of the net assets of the Fund can also invest to a limited extent directly in Bitcoin futures.
Existing Blockchain ETFs
Reality Shares already offers two Blockchain ETFs, developed in collaboration with Nasdaq: the Reality Shares Nasdaq Nexgen Economy ETF (BLCN) and the Reality Shares Nasdaq Blockchain China Index (BCNA).
The former was founded on January 17 last year and aims for long-term growth by tracking the investment returns of the Reality Share's Nasdaq Blockchain Economy Index. Founded on June 20 last year, the latter seeks long-term growth by tracking down the investment returns of the Nasdaq Blockchain China Index, which is made up of blockchain-linked companies in Hong Kong and mainland China.
What do you think about this new ETF deposit? Let us know in the comments below.
Images courtesy of Shutterstock.
Do you need to calculate your Bitcoin inventory? Take a look at our tools.
The post-ETF filed with the SEC to invest in Bitcoin futures, bonds and mutual funds first appeared on Bitcoin News.
Post-source: SEC-backed ETF for investment in Bitcoin futures, bonds and pension funds
More Bitcoin news and cryptocurrency news on TheBitcoinNews.com