According to the prospectus, the new ETF would be managed by Crescent Crypto Index Services LLC, a subsidiary of Crescent Crypto Asset Management LLC. The USCF Crescent Crypto Index Fund (XBET) intends to issue shares that trade on the NYSE Arca stock exchange.
“For purposes of assigning a weight to each Portfolio Cryptocurrency, Crescent calculates market capitalization using data from a select subset of publicly-available cryptocurrency exchanges and liquidity providers, including over-the-counter (“OTC”) liquidity providers, representing a high-quality subset of global volumes of each Portfolio Cryptocurrency,” reads the prospectus. “The Crescent Crypto Index Committee selects liquidity providers based on a strong history of security controls, availability to US institutional investors, substantial trading volumes, and a strong track record of local regulatory compliance.”
XBET joins a growing list of ETF proposals currently being considered by the SEC. Most recently, Crypto asset manager Bitwise, creator of one of the world’s first privately-offered cryptocurrency index funds, proposed the Bitwise Bitcoin ETF, which would track the Bitwise Bitcoin Total Return Index, which includes Bitcoin and any “meaningful” hard forks.
Bitwise’s latest ETF proposal notably differs from all previously filed Bitcoin ETFs as it would rely on regulated third-party custodians to hold its physical Bitcoin and would pull price data from a large number of certified crypto exchanges, to reduce the potential for price manipulation.
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.