Reality Shares To Launch ETF and Bitcoin Futures
Reality Shares ETF Trust — a unit of crypto-focused fintech firm Blockforce Capital — has filed a proposal for an exchange-traded-fund (ETF) that would invest in a portfolio which includes both sovereign debt instruments and Bitcoin (BTC) futures.The ETF filing was submitted to the United States Securities and Exchange Commission (SEC) February 11.
According to The Block, as per a final draft of the fund’s prospectus, the ETF is actively managed to “provide investment exposure to global currencies, both fiat and virtual currencies, that have been widely adopted for use.” To that end, the fund would potentially invest up to 15% of its total assets in bitcoin futures trading on both Cboe Global Markets and CME Group. It could also invest in contracts trading on other bitcoin futures marketplaces at some point, the prospectus noted. In addition, the fund will invest in sovereign debt instruments tied to British Pounds, Japanese Yen, Swiss Francs, and money market mutual funds.
Reality Shares’ proposal comes on the heels of two bitcoin-specific ETF filings made by Bitwise Asset Management and VanEck/SolidX last month. While Bitwise’s proposal was also filed by NYSE Arca, VanEck and SolidX are working with Cboe BZX Exchange.
The VanEck/SolidX proposal is famously identical to an earlier proposal that many hoped would be the first bitcoin ETF approved. However, the companies pulled the previous version after the prolonged U.S. government shutdown, saying at the time that they were unable to continue discussions about the proposal with the SEC, Coindesk reports.
With multiple actors — including the Winklevoss twins — either failing or continuing to await the SEC’s approval of their BTC-related ETFs, crypto entrepreneur and CNBC analyst Brian Kelly has recently claimed there is “no shot” for a crypto ETF to get the regulatory greenlight in 2019.