The recent recovery of cryptomarkets is attracting a growing number of investors. The fact that Bitcoin has shown a higher return than any other asset, commodity or stock has definitely not gone unnoticed.
Taking advantage of market sentiment, a new group of entrepreneurs has filed a new petition for a crypto ETF before the SEC. This request is characterized for being based not only on Bitcoin but also on a basket of cryptos (BTC+ETH).
The ETF was filed by the United States Commodity Funds LLC (USCF) in alliance with the hedge fund Crescent Crypto, a New Jersey-based firm. The application was filed on May 9, 2019, and has not yet been decided.
According to the proposal, the fund will “track the performance of a market capitalization weighted portfolio of Bitcoin and Ether.” Its name would be USCF Crescent Crypto Index Fund (XBET) and USCF expects a “hypothetical investment in shares to breakeven over the next 12 months, assuming a selling price of $20.00”
SEC has Other Crypto ETFs Waiting
In addition to the new Crypto Index Fund, the SEC has other pending decisions regarding two Bitcoin ETFs filed by Bitwise and VanEck. So far, the SEC has not approved any initiatives, rejecting 9 petitions in August last year.
However, after a series of changes to the SEC’s directive, investors may be optimistic. The new pro-crypto commissioners could tip the balance in favor of approving a Bitcoin ETF, contributing to ecosystem growth.
On previous occasions, the different news covering the rejection of these initiatives have had a strong negative impact on the BTC’s performance, especially during 2018 when the bearish trend reached historic levels.
But things seem to have changed this year. BTC has been able to remain stable or even bullish in the face of news that at another time could have been catastrophic (like the recent Binance hack) so it is possible that an eventual rejection of the ETFs of Bitwise and VanEck will not have the negative consequences that were observed in the past
But if you are on the bullish camp, it is unquestionable that if approved, the trading volume and the attraction of new capitals will result in an important growth of the ecosystem.