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Reality Shares ETF Trust – a unit of the fintech company specializing in Blockforce Capital cryptographic technologies – has filed a proposal to create an exchange-traded fund (ETF) that would invest in a portfolio comprising both sovereign debt securities and Bitcoin futures (BTC). The filing of the ETF was filed with the US Securities and Exchange Commission (SEC) on February 11.
ETFs are securities that follow a basket of badets proportionately represented in the shares of the fund. Some see it as a "holy grail" potential that would herald the widespread adoption of cryptocurrencies as a pbadive and regulated investment instrument.
The proposed fund, to be listed on the NYSE Arca, is designed to "provide exposure to global currencies, both fiduciary and virtual, that have been widely adopted for use (for example, as a store of value, international transfers , trading) worldwide. "
In the case of BTC Futures, the Fund would initially invest – if successful – through a 100% -owned subsidiary in the Cayman Islands in cash-settled BTC Futures that are currently traded on the CBOE Futures Exchange (CFE). and Chicago Mercantile Exchange (CME).
The Deposit Notes indicate that the CFE and CME BTC Futures positions will be valued "at their respective forward cash settlement values as published. […] at the close of each trading day. "He also proposes that the fund may evolve to invest in BTC futures futures trading on other stock exchanges, but stresses that the fund" will not invest directly in [B]itcoin. "The deposit adds:
"The Fund may acquire most of its exposure to Bitcoin Futures by investing in the subsidiary, which invests in Bitcoin Futures. To the extent that the Fund invests directly in such instruments, it will seek to limit the income generated by these instruments to no more than 10% of its gross income. […] comply with certain eligible income criteria necessary for the Fund to qualify as a regulated investment company. "
In addition to the Bitcoin futures, the proposed fund will also invest more in high-quality, US dollar, euro, sterling, Japanese yen and US-listed high-grade sovereign debt securities. in Swiss francs. francs. "
As noted above, a separate Bitcoin ETF owned by investment firm VanEck and financial services firm SolidX – to be listed on CBOE's BZX stock market – is currently embezzling through various deposits with from the SEC.
With several players – including the Winklevoss twins – who fail or continue to wait for the SEC's approval of their BTC ETFs, Brian Kelly, a cryptography badyst and badyst at CNBC, recently said that There was no alternative for an encrypted ETF to get the regulatory green light in 2019.
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