A registration statement for a new exchange traded fund (ETF) that will invest in standard bitcoin futures contracts among other conventional investments has been filed with the US Securities and Exchange Commission (SEC). The fund's portfolio will include term bitcoins traded on the Cboe Futures and Chicago Mercantile Exchange, as well as sovereign debt and money market mutual funds.
New ETF Deposit
Reality Shares ETF class 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 strategies. Blockforce Global Currency Strategy's Reality Shares ETF is an actively managed fund listed on the New York Arca Stock Exchange. The fund is "designed to provide exposure to global, trustee and virtual currencies," the document says.
The proposed new ETF will invest in a portfolio of "short-term sovereign debt securities (high-quality, high-quality, superior to 18 months)" traded on the US market in US dollars, Euro, pounds sterling, in Japanese yen. and Swiss francs. According to the record, it will also invest in "bitcoin futures of various maturities listed for trading on US exchanges offering exposure to bitcoin price movements", as well as in "money market mutual funds". / or other cash equivalents ".
Invest in Bitcoin Futures
The registration statement for the Realforce Shares Blockforce Global Currency Strategy ETF:
The fund expects to invest in bitcoin futures traded on the Cboe Futures Exchange Llc … and / or the Chicago Mercantile Exchange (CME), but may invest in bitcoin futures traded on other exchanges in the future .
In addition, the fund expects to gain exposure to bitcoin futures by investing up to 25% of its total assets in a wholly-owned subsidiary under its control. The record explains that the fund's investment advisor "will seek to limit the subsidiary's investment in bitcoin futures, so that the aggregate notional exposure of the fund to bitcoin futures is limited to 15% of the net assets of the fund at the time of the offering.
Existing Blockchain ETFs
Reality Shares already offers two blockchain ETFs created in partnership with the Nasdaq: Reality Nasdaq Nexgen Economy ETFs (BLCN) and Reality Nasdaq Blockchain China Index (BCNA) shares.
The first was created on January 17 of last year and aims for long-term growth by tracking the investment returns of the Reality Shares Nasdaq Blockchain Index. The latter was created on June 20 and aims for long-term growth by tracking investment returns from the Reality Shares Nasdaq Blockchain China Index composed of blockchain-related companies located in Hong Kong and mainland China.
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