The price of a single bitcoin is currently approaching $8,000, continuing its stellar start to the year. Bitcoin is up more than 54% this year, and is spurring a handful of new ETF proposals.
As of 2 pm EST Monday, Bitcoin (BTC) was trading up 11.92% at $7,776.95.
Tracking the trend of new Bitcoin ETFs, the prospectus for a new exchange-traded fund that tracks the performance of a market cap-weighted portfolio of Bitcoin (BTC) and Ethereum (ETH) has been submitted to the SEC.
According to the prospectus, the new ETF would be managed by Crescent Crypto Index Services LLC, a subsidiary of Crescent Crypto Asset Management LLC. The USCF Crescent Crypto Index Fund (XBET) plans to issue shares that trade on the NYSE Arca stock exchange.
The prospectus explains, “XBET is an exchange traded fund. This means that most investors who decide to buy or sell shares of XBET place their trade orders through their brokers and may incur customary brokerage commissions and charges. Shares of XBET are expected to trade on the NYSE Arca under the ticker symbol “XBET” and will be bought and sold throughout the trading day at bid and ask prices like other publicly traded securities.”
“For purposes of assigning a weight to each Portfolio Cryptocurrency, Crescent calculates market capitalization using data from a select subset of publicly-available cryptocurrency exchanges and liquidity providers, including over-the-counter (“OTC”) liquidity providers, representing a high-quality subset of global volumes of each Portfolio Cryptocurrency,” reads the prospectus. “The Crescent Crypto Index Committee selects liquidity providers based on a strong history of security controls, availability to US institutional investors, substantial trading volumes, and a strong track record of local regulatory compliance.”
“There is growing, universal acceptance that cryptocurrencies are the future of money – and the future is now. High net worth individuals are not prepared to miss out on this and are rebalancing their investment portfolios towards these digital assets.
“Crypto is to money what Amazon was to retail. Those surveyed clearly will not want to be the last one on the boat.”
While an ETF related to bitcoin or any other digital currency still does not exist in the U.S., a recent survey by Bitwise Asset Management indicates plenty of U.S. investors would use such a vehicle to access the world’s largest cryptocurrency.
“58% of American investors would prefer to invest in Bitcoin via an exchange-traded fund (ETF), a formal survey found,” according to NewsBTC.
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