Reality Shares Applies To SEC To Open ETF
Reality Shares, a California-based firm, sent an application to the Securities and Exchange Commission (SEC) to open an ETF, a small part of which will be represented by bitcoin futures, The Block reports.
When considering applications for the opening of bitcoin ETF, the SEC is concerned about manipulation and lack of liquidity. Reality Shares representatives decided that in case of limited access to bitcoins, the regulator will be more loyal and approve the product.
If the SEC issues a permit, the fund will offer the first financial product of this kind. Customers will have access to fiat currencies and the most liquid digital assets. The fund will be listed on NYSE Arca, managed by the New York Stock Exchange.
Potentially, the fund can invest up to 15% in futures trading on the first cryptocurrency at the Chicago platforms CBOE and CME. Besides, investments can be made in futures on other platforms. It is planned to invest in some national currencies and other financial products.
The Commission is not in a hurry to give permission to open a full-fledged cryptocurrency ETF, Eric Ervin, the executive director of Reality Shares, stated. However, he believes that in the case of his company's application the risks are substantially less.
Many analysts stress that the opening of bitcoin ETF will give impetus to the further development of the crypto sphere. However, Changpeng Zhao, the head of the Binance exchange, stated that not ETFs should play a major role in the development of the crypto industry but actual projects.