The U.S. Securities and Exchange Commission (SEC) has revealed a new proposal for a cryptocurrency-backed exchange-traded fund (ETF) from Crescent Crypto Index Services.
A subsidiary of Crescent Asset Management, the New Jersey-based company will be seeking to track the performance of a portfolio of bitcoin (BTC) and ether (ETH), according to the application. The fund has been dubbed as “USCF Crescent Crypto Index Fund,” with proposed ticker “XBET.”
According to the filing, the fund will be sponsored by United States Commodity Funds LLC, a commodity pool operator that is compliant with the Commodity Futures Trading Commission (CFTC) and the National Futures Association.
The SEC is also reviewing other proposals, including the Bitwise Asset Management and the New York Stock Exchange (NYSE) Arca’s Bitwise Bitcoin ETF Trust and the VanEck SolidX proposal, which was initially filed last year.
Although the SEC has yet to approve any of the proposals, the fact that there are three different ETF proposals is a good sign for cryptocurrency investors. In the last two years, there were several companies that failed to get ETF approval. These included the Winklevoss-owned Gemini Trust, Direxion, and ProShares. There were also companies that had to withdraw their applications after suffering delays from the agency.
According to the SEC, among other reasons for denied proposals were concerns over market manipulation and lack of investor protection.