New Proposed ETF Would Mix Bitcoin Futures With Sovereign Debt

A new proposed exchange-traded fund (ETF) would invest in bitcoin futures – though only as part of a larger set of more conservative investments.

Reality Shares ETF Trust, a branch of Blockforce Capital, which already launched one ETF with blockchain products, filed a Form N1-A with the U.S. Securities and Exchange Commission (SEC) Monday in partnership with NYSE Arca, looking to launch the Reality Shares Blockforce Global Currency Strategy ETF.

If approved, the fund would invest in a portfolio which includes “high-quality, short-term sovereign debt instruments listed for trading on U.S. exchanges and denominated in U.S. dollar, euro, British pounds sterling, Japanese yen and Swiss francs,” as well as bitcoin futures, money market mutual funds and/or other cash equivalents, according to the filing.

The fund would invest in cash-settled bitcoin futures contracts, rather than physically settled. In other words, when the contract expires, the investor would receive the cash equivalent of its value, rather than actual bitcoins. According to the filing, “the fund will not invest directly in bitcoin.”


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