The SEC with a new crypto-backed ETF application review

A new crypto-based ETF application has been filed with the SEC. This time is not about “all about” Bitcoin, though.

The application has been filed by Crescent Crypto Index Services LLC. The subsidiary of Crescent Crypto Asset Management LLC envisages an ETF that tracks the performance of market cap-weighted portfolio of ether and bitcoin.

With a ticker symbol XBET, the new proposed ETF is called USCF Crescent Crypto Index Fund. The choice of name has to do with the actual sponsorship  of the ETF, namely made by the United States Commodity Funds LLC or simply USCF. USCF will be the one to invest the assets of the proposed ETF in bitcoin and ether.

This is what the prospectus says about the new ETF:

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.

And this is how Crescent is actually described:

Crescent Crypto Asset Management, LLC is a leader in crypto benchmarking and passive index investing. The firm launched in November of 2017 and is led entirely by Goldman Sachs alumni. Crescent’s first fund offering, the Crescent Crypto Market Index Fund, is designed to replicate the returns of the “investment grade” crypto universe in a passive, rules-based approach that is tax efficient and scalable.

The major goal of the Crescent is actually to create more innovative investment opportunities and solutions for the “average” or mainstream investor out there.

And of course, everyone is now waiting to see if the SEC finally approves and gives the green light to a crypto-backed ETF. The regulator has already postponed and rejected several applications and no application has been successful so far. However, there is always hope that a crypto-backed ETF is just around the corner.

 

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