Regulatory Series on Cryptocurrencies: USCF LLC Files For Bitcoin and Ethereum-Backed Crypto ETFs With SEC

Back in 2017-18, the entire Cryptocurrency and ICO industries have seen in a continued struggle ever since the U.S. SEC (Securities and Exchange Commission) declined the Winklevoss twins’ and other attempts of launching a bitcoin ETFs.

The US SEC has again deferred their decision on several other applications, like the approval of Bitwise’s Bitcoin ETF application, the regulator is due to its review whether the applications fulfill the pre-requisites and ensure safeguards investors’ interests. 

While VanEck, SolidX, and CBoE a joint application were also postponed to May which the community reckons for the positive news from the US regulator beaming up with optimism.

Despite the prolonged backdrop, for now, in yet another case, a new crypto Exchange Traded Fund (ETF) proposal has been filed with the Securities Exchange Commission (SEC) by the USCF LLC (United States Commodity Fund). By the name of crypto-ETH and USCF Crescent Crypto Index Fund (“XBET” or the “Fund”), if approved, will be issued as shares on the NYSE Arca stock exchange.

XBET indicates the daily shift in percentage terms of the Crescent Crypto Core II Index (the “CCINDX”), less XBET’s expenses. The new “CCINDX” will comprise of Bitcoin (ETH) and Ether (ETH). 

The application reads: the offering of XBET’s shares is registered with the Securities and Exchange Commission (“SEC”) in accordance with the Securities Act of 1933 (the “1933 Act”). The CFTC appears to be comfortable with Ethereum based derivatives.

While the SEC has recently published the much-awaited regulatory Framework for Investment Contract Analysis of Digital Assets but yet to look into the applications. While an important development in detailing the guidelines for issuing crypto-assets in compliance with federal regulations, the framework doesn’t appear to be exhaustive as cited by the SEC.

The framework is not intended to be an exhaustive overview of the law, but rather, an analytical tool to help market participants assess whether the federal securities laws apply to the offer, sale, or resale of a particular digital asset,” as per the publication details.

While the United States regulator, the “crypto mom”, the commissioner Hester Peirce made remarks on her apprehensions about the major hindrance for the entire cryptocurrency industry. Wherein, Peirce stated at the Securities Enforcement Forum in East Palo Alto, California on May 9th, the SEC’s hesitance to provide clear guidance would hold back its growth.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 158 levels (which is highly bullish), while hourly USD spot index was at 3 (neutral) while articulating (at 12:05 GMT). 

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