The SEC continues to follow cryptocurrencies closely
According to reports coming from the Securities and Exchange Commission (SEC), it recently received another application for the implementation of cryptocurrency exchange-traded-fund (ETF) from Crescent crypto.
This application was Submitted on the 9th of May 2019, and it’s the latest news coming from the SEC’s attempt at a crypto ETF.
The application was prepared by Crescent Crypto Index Services LLC, which is a subsidiary of the Crescent Crypto Asset Management LLC.
Crescent Crypto prospectus has stated that the ETF will be tracking the performance of a market capitalisation weighted portfolio. This portfolio will be hosting cryptocurrencies like Bitcoin, Ethereum and others.
The portfolio which is referred to as the USCF Crescent Crypto Index Fund (XBET) will be supported by the US Commodity Funds LLC and the company is set to invest both in Ethereum and Bitcoin.
The ETF application shows that the XBET will be an exchange-traded fund and individuals who decide to buy or sell their shares of the XBET funds will have to place their orders with a broker. However, this may also come with brokerage commissions and charges.
Navigating the cryptocurrency ecosystem
XBET is expected to be traded on the New York Stock Exchange(NYSE) and will go under the name Arca. These funds are expected to work similarly to any other traditional ETF or Traded funds.
If this cryptocurrency ETF is approved it will be bought and sold throughout the trading platforms for publicly traded securities.
The company is not new to the commodities market. It has been around for some time and has its headquarters in Oakland, California. It launched its first fund back in 2006, with the United States Oil Fund and LP being it’s first ETF-based commodity based on Crude oil.
Current ETF filings with the SEC
There are a number of different ETF’s that the SEC is currently reviewing, among which is Bitwise Asset Management with NYSE Arca and VanEck/SolidX filed through a Chicago Board of Options Exchange (Cboe).
Back in March of 2019, the SEC first looked into the ETF application from these two companies and is now awaiting a review from the Federal Security regulators this month.
A decision on these cryptocurrency ETF’s may likely cause some market Volatilities, as crypto news related to ETF’s have always seen Bitcoin’s price being affected. If approved it will also be the first crypto-based ETF that will be approved to date.
What do you think of the filing of this crypto ETF? Feel free to leave a comment down below.