Reality Shares, which operates out of California, is requesting the Securities and Exchange Commission's go-ahead for their partial Bitcoin ETF proposal.
Industry observers have praised the unique strategy, suggesting it could align well with what the Commission expects, providing an investment option closely matching regulatory requirements.
Details of the Partial Bitcoin ETF
The company has forwarded its application through formal channels. prospectus On a Monday, filed with the SEC, the 'Reality Shares Blockforce Global Currency Strategy ETF' aims to allocate 15% to Bitcoin futures offered by both CME and Cboe.
A portion of the prospectus reads:
This fund is actively managed with the goal of engaging in investments across major global currencies, both conventional and digital, that have gained significant acceptance, making them major global currencies.
Unlike other Bitcoin ETF Reality Shares stands out from other SEC filings by incorporating a restricted Bitcoin ETF into a broader currency fund. The fund plans to blend fiat with digital assets.
A Partial Bitcoin ETF is seen as a way to lower investment risks.
Regarding the crypto component, the application highlights additional Bitcoin futures investments beyond CME and Cboe. Though up to 25% of assets might theoretically go into Bitcoin futures, actual exposure is capped at 15% by design.
Limiting exposure in this manner might align the proposal favorably with U.S. regulatory attitudes, which have been cautious due to volatility and market stability issues tied to crypto assets.
The search for SEC-approved BTC ETFs is ongoing. Earlier this year, Bitwise made another filing, and the VanEck/SolidX proposal has been revisited. originally withdrawn Cboe refiled during the government shutdown. According to Robert Jackson Jr., an SEC Commissioner, the approval of a BTC ETF seems likely in time. declared Public reaction to this development has been enthusiastic, with Tom Lee of Fundstrat endorsing a crypto-inclusive currency fund via Twitter.
There's potential for this to open doors for institutional investors.
Others favor the narrative shift towards legitimizing cryptocurrencies as assets by having them represented in an ETF, which Reality Shares CEO, Eric Ervin, sees as an appealing entry point for hesitant institutional investors.
The buzz around institutional interest in cryptocurrencies is growing.
One Virginia-based firm has become the pioneer in the U.S. for investing in a crypto fund, managed by Morgan Creek Digital, which is valued at $40 million and includes stakes in prominent entities. Two pension funds Osato is a Bitcoin advocate offering insights on current Bitcoin trends. Outside crypto news, he's either striving to surpass his personal Scrabble score or mulling over deep philosophical questions. You can reach him at [email protected]. coinbase and Bakkt .
