Another exchange traded funds issuer is trying its hand at bringing a bitcoin ETF to market. Reality Shares, which currently sponsors two blockchain ETFs, filed plans with the Securities and Exchange Commission (SEC) to launch the Reality Shares Blockforce Global Currency Strategy ETF.
In addition to including bitcoin futures, the Reality Shares bitcoin ETF would include “high-quality, short-term sovereign debt instruments listed for trading on U.S. exchanges and denominated in U.S. dollar, euro, British pounds sterling, Japanese yen and Swiss francs,” as well as bitcoin futures, money market mutual funds and/or other cash equivalents,” according to the filing.
Some digital currency market observers have long viewed U.S. approval of a bitcoin ETF as pivotal to increased adoption of the cryptocurrency.
In 2018, bitcoin shed almost 80% of its value. Among the issues plaguing bitcoin; last year were the ongoing unwillingness of U.S. regulators to approve bitcoin-related exchange traded funds as well as data indicating that mainstream acceptance and adoption of the digital currency are declining.
Patiently Waiting
To date, U.S. regulators have consistently rejected efforts by ETF issuers to bring bitcoin-related ETFs to market.
Last year, the SEC rejected the applications, preventing the digital currency from gaining more acceptance from investors who are wary of the unregulated exchanges of cryptocurrencies. The SEC’s Division of Trading and Markets rejected applications from investment firms ProShares, Direxion and GraniteShares.
The Reality Shares fund, assuming it launches, would contain bitcoin futures trading on the CBOE and CME.
“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,” according to the filing.
The proposed bitcoin ETF would be actively managed.
Reality Shares currently offers the Reality Shares Nasdaq NexGen Economy China ETF (NASDAQ: BCNA) and the Reality Shares Nasdaq NexGen Economy ETF (NASDAQ: BLCN), both of which debuted last year.
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