The REX Bitcoin ETFs will invest up to 25% of total assets in wholly-owned Cayman Islands subsidiary, which invest in long positions in Bitcoin Futures and will periodically sell contracts to unwind a portion of its positions. Furthermore, their notional value of exposure to Bitcoin will be equal to approximately 100% of fund assets.
Bitcoin is a decentralized digital currency, or cryptocurrency, based on a peer-to-peer network and can be exchanged through computers internationally without a financial intermediary. The system was first introduced by an unidentified programmer or group under the name of Satoshi Nakamoto in 2009.
VanEck also recently filed for an active Bitcoin ETF, the VanEck Vectors Bitcoin Strategy ETF. Unlike the REX Bitcoin ETFs, VanEck’s subsidiary will represent up to 25% of the fund’s total assets.
For more information on the cryptocurrency, visit our Bitcoin category.