Reality Shares Applied a ETF Investing Bitcoin Futures Traded on NYSE Arca
[ChainDD report] February 12 (ChainDD) A California-based assets manager Reality Shares filed application with the U.S. Securities and Exchange Commission (SEC) on February 11, to launch a new fund Reality Shares Blockforce Global Currency Strategy ETF which plans to list on NYSE Arca, another renowned exchange of New York Stock Exchange (NYSE)’s parent the Intercontinental Exchange (ICE).
Reality Shares said rather than direct investment in Bitcoin, the ETF will invest in a portfolio which consists of high quality short-term sovereign debt traded on U.S. exchanges, cash-settled Bitcoin futures, money market mutual funds and/or other cash equivalents.
ChainDD noted that Reality Shares have two ETF focusing on blockchain companies listed on Nasdaq and NYSE Arca respectively, which becoming first blockchain ETF on its trading exchange. And previous applicants of Bitcoin ETFs don’t have plans to invest in sovereign debts.
According to ChainDD’s previous news, the current Bitcoin future contracts traded on two leading futures exchanges CME Group and Cboe are all cash settled. When the contract expires, investors will receive cash equivalent to its value, instead of Bitcoin. ICE’s digital assets trading platform Bakkt plans to launch the first physically settled Bitcoin future that settled by Bitcoin itself, pending regulatory approval until now.