Submitted to the United States Securities and Exchange Commission on February 11, new bitcoin ETF by a subsidiary of Blockforce Capital is a new move. The newly filed proposal is called ‘Reality Shares Blockforce Global Currency Strategy ETF ’ which contains both – the sovereign debt instruments as well as Bitcoin futures.
ETF Beyond Bitcoin Futures
Reality Shares ETF is primarily a subsidiary of Blockforce capital, a US-based crypto firm. On Monday, the firm has filed a registration form with SEC to list its new ETF on NYSE Arca. According to the new proposal, the fund ’s portfolio involves futures traded on Cboe future exchange and the Chicago Mercantile Exchange. On top of these, it also includes sovereign debts and money market mutual funds.
The registration form reads that;
“The Fund expects to obtain exposure to Bitcoin Futures by investing up to 25% of its total assets, as measured at the end of every quarter of the Fund’s taxable year, in a wholly-owned and controlled Cayman Islands subsidiary. However, the Adviser will seek to limit the Subsidiary’s investment in Bitcoin Futures, so the Fund’s aggregate notional exposure to Bitcoin Futures is limited to 15% of the Fund’s net assets at the time of investment.”
Furthermore, the filing explains that out of 25 percent of its total assets, it would limit 15 percent of notional exposure to BTC allocation and on the other hand, 10 percent would be allocated to money market instruments.
15 [percent] of the Fund’s net assets representing notional exposure in Bitcoin Futures and (iii) 10 [percent] of the Fund’s net assets in Money Market Instruments for margin and/or cash management purposes, each as measured at the time of purchase (the ‘Target Portfolio’).”
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