Last week, ProShares filed with the SEC to launch the “Bitcoin Strategy ETF.”
According to the filing, the fund will invest primarily in Bitcoin futures contracts. In addition to futures contracts, the filing says the fund may also invest in Canadian ETFs and private trusts that provide exposure to the spot price of Bitcoin.
The Fund will invest a portion of its assets in a wholly owned Cayman Islands Subsidiary, which will be managed by ProShares advisors.
Additionally, the filing states that the fund is “non-diversified” and therefore not required to meet diversification requirements under the Investment Company Act of 1940.
The application explicitly states that the fund will not invest directly in Bitcoin.
The executive officers listed as responsible for the day-to-day operations of the trust are Todd B. Johnson, Charles S. Todd, Victor M. Frye, and Richard F. Morris.
The investment advisor is listed as ProShare Advisors. JP Morgan is listed as the fund administrator as well as the fund custodian.
No management fee or ticker was listed.
ProShares is the second company to file with the SEC this month to launch a Bitcoin futures-based product.
Investment management company Invesco recently filed with the SEC to launch the Invesco Bitcoin Strategy Fund, which will also primarily invest in Bitcoin futures contracts.
SEC chair Gary Gensler has recently signaled his support for crypto asset ETFs, particularly products dealing with Bitcoin futures traded on the Chicago Mercantile Exchange (CME).
In remarks to the Aspen Security Forum, Gensler said that many parts of the crypto market are operating outside of the regulatory frameworks that protect investors and consumers. According to Gensler, ETFs provide “significant investor protections.”
Currently over a dozen crypto asset ETFs are under review at the SEC.
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