The US Securities and Exchange Commission (SEC) received a new application for a cryptocurrency ETF license. A registration statement on Form S-1, which the regulatory watchdog published on May 9, was filed by Crescent Crypto Index Services.
A multi-crypto ETF
The USCF Crescent Crypto Index Fund (“XBET”) is composed of a portfolio of two digital assets – Bitcoin and Ethereum, the biggest cryptocurrencies by market capitalization.
As reported by U.Today, the SEC concluded that both Bitcoin and Ethereum are not securities, which makes them tradable as ETFs. XBET will be traded on the New York Stock Exchange (NYSE).
“Shares of XBET are expected to trade on the NYSE Arca under the ticker symbol “XBET” and will be bought and sold throughout the trading day at bid and ask prices like other publicly traded securities,” the filing states.
The issuers claim that investing in these ‘emerging assets’ incurs a significant risk since they are volatile and largely unregulated.
Three pending applications
Apart XBET, the SEC is currently reviewing two Bitcoin ETF applications from Bitwise Asset Management and VanEck/SolidX. The SEC was supposed to announce its verdict on the Bitwise ETF back in March, but the deadline has been postponed.
The chances that this application will get approved by the SEC are rather gleam. Not a single crypto ETF has been launched in the US so far since the first unsuccessful attempt that took place in 2017.
Back in February, the regulator requested Reality Shares to withdraw its filing.
Vladislav Sopov
Denys Serhiichuk
Tomiwabold Olajide