Reports coming in from the United States Securities and Exchange Commission (SEC) has it that a new application from Crescent Crypto for the implementation of crypto exchange traded-fund (ETF) has been received. According to SEC, the application was received on the 9th of May 2019.
This new application was reported to have been prepared by a subsidiary firm of Crescent Crypto Asset Management LLC known as the Crescent Crypto Index Service LLC. In the application, the crypto firm stated that ETF will be solely in charge of tracking market capitalisation performance as well as its weighted portfolio.
The portfolio on the other hand will be hosting digital currencies like BTC, ETH, Ripple and so on. Crescent crypto dubbed the portfolio as USCF Crescent Crypto Index Fund (XBET); will also be maintained by the US Commodity Funds LLC, the latter however is said to be looking at investing in both BTC and ETH.
According to the filing,
‘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’
The firm expect that in no time, XBET will start trading on the New York Stock Exchange (NYSE) using the name ARCA. The funds generated are also expected to work like any other traded funds or traditional ETF.
More so, if the SEC approves this ETF, it will allow buying and selling of the cryptocurrency on several trading platforms for publicly traded securities.
Crescent crypto is not new to the cryptocurrency and commodity market which makes this development a tip of the iceberg for the firm.
The firm is headquartered at California, Oakland to be precise. In its earlier press release, the firm launched its first fund in 2006 and its first ETF based commodity on Crude oil was with the United States Oil Fund and LP.
Reports has it that aside from the current EFT from Crescent Crypto, SEC is also reviewing other ETF’s. Among them are VanEck/SolidX and Bitwise Asset Management. The former was filed through a Chicago Board of Options Exchange (Cboe+) while the latter was filed through the NYSE Arca.
As part of SEC’s activity, the commission is to review the ETF applications of firms that are looking to enter into stock exchange. Recently, the SEC first looked into the application of the two firms mentioned above and are now waiting for feedback from the United State Federal Security regulators to determine the success of the application.
However it is important to note that the decision of the ETF may cause serious volatility in the market according to experts. The reason is because news pertaining to ETF have affected the price of BTC significantly in the past. The good news is if the application is successful, it will be the first crypto-currency based exchange traded-fund to ever be approved.