ETF company REX wants to launch Bitcoin derivatives fund, seeking SEC approval


nnnAdventure Comment: Connecticut’s ETF company REX intends to launch a Bitcoin derivatives fund that has filed an application with the SEC. In view of the SEC before the application for Bitcoin ETF are rejected, the company’s design of this fund is also more thought, not directly invest in Bitcoin, but the investment and related financial instruments. However, it remains to be seen whether the application and some recent similar applications can be approved.n
nnTranslated by: Inan
nAccording to the SEC’s record, an ETF company based in Connecticut is launching a new fund to invest in Bitcoin-based derivatives and other exchange products.n
nREX ETF was established in 2014, according to its August 23 submitted to the SEC application documents, the company hopes to set up “REX Bitcoin strategic fund.” The fund will not invest directly in digital currency, but rather intends to buy futures contracts and exchange-traded notes bound to Bitcoin to participate in the market.n
nThe company’s initial prospectus notes:n
nn”The fund does not invest directly in Bitcoin, but directly or indirectly invests in financial instruments related to Bitcoin, including futures contracts related to Bitcoin prices or their indices – traded in the US and / or listed (Bitcoin Futures) “n
nnPrior to submitting the application, REX has announced that it is setting up a subsidiary dedicated to the development of digital assets (such as Bitcoin) investment products. The company’s representative said in a statement that it would develop a variety of products over the next few years.n
nREX CEO Greg King said:n
nn”We believe that digital money is a great innovation that will affect finance and investment in the next few decades.”n
nnThis application document represents the latest attempt to take advantage of the growth of Bitcoin derivatives.n
nFor example, earlier this month, the Options Exchange CMOE announced that it would work with the New York Stock Exchange Gemini to plan to launch Bitcoin derivatives later this year, but the plan is still awaiting regulatory approval. CoinDesk also reported this month that US fund management company VanEck is seeking to launch its own currency exchange fund (ETF).n
nAt the same time, the SEC has been less active in approving investment products related to Bitcoin, and the most significant manifestation may have been the rejection of the Winklevoss brothers’ ETF application. Although the SEC later began to review the decision, it would not be clear whether the application would eventually be approved.n

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