The prospectus for a new cryptocurrency-based exchange-traded fund (ETF) was filed on May 9th, 2019. The document was filed with the U.S. Securities and Exchange Commission (SEC). The exchange-traded fund (ETF) is sponsored by the United States Commodity Funds LLC (USCF).
The application was posted by the SEC and it was created by Crescent Crypto Index Services LLC with ticker “XBET”. CCIS LLC is a subsidiary of Crescent Crypto Asset Management LLC, it tracks the performance of the market capitalization-weighted portfolio of Bitcoin (BTC) and Ether (ETH).
Info on the proposal
The proposal states that XBET is an exchange-traded fund. This implies that most investors who decide to buy or sell shares of XBET make their trade orders through their brokers. Thus, they may incur customary brokerage commissions and charges.
Shares of XBET are expected to be traded on the NYSE Arca under the ticker symbol “XBET”. It will also be bought and sold throughout the trading day at bid and ask prices like other publicly traded securities.
USCF is a commodity pool operator subject that is under the regulatory supervision of the Commodity Futures Trading Commission, as well as the National Futures Association under the Commodity Exchange Act (CEA).
A number of ETFs under review
XBET joins the list of crypto ETFs currently being reviewed by the SEC.
There are two other bitcoin ETFs, one was filed by Bitwise Asset Management with NYSE Arca and the other from VanEck and SolidX in partnership with Cboe BZX Exchange. They were both postponed late in March.
Although, the SEC has not yet approved any crypto ETFs. It is only a matter of time before they pass regulatory requirements.