New Cryptocurrency-based ETF Filed with US SEC

The US Securities and Exchange Commission (SEC) has received another application for a cryptocurrency-based exchange-traded-fund (ETF). Submitted on May 9, 2019, the latest crypto ETF application was prepared by Crescent Crypto Index Services LLC, a subsidiary of Crescent Crypto Asset Management LLC.

Crescent Crypto Index Fund (“XBET”)

According to Crescent Crypto’s prospectus, the ETF will “track the performance of a market capitalization weighted portfolio of bitcoin (BTC) and ether (ETH).” Referred to as the USCF Crescent Crypto Index Fund (“XBET”), the ETF is supported by the US Commodity Funds LLC (USCF), which will reportedly invest XBET’s assets in both BTC and ETH (held in the investment portfolio).

According to the ETF application: “XBET is an exchange traded fund. This means that most investors who decide to buy or sell shares of XBET place their trade orders through their brokers and may incur customary brokerage commissions and charges.”

As noted in Crescent Crypto’s prospectus, shares of XBET are “expected to trade” on the New York Stock Exchange (NYSE) Arca under ticker symbol “XBET.” In a manner that is similar to how traditional ETFs are traded, the crypto-based ETF, if approved, will “be bought and sold throughout the trading day at bid and ask prices like other publicly traded securities.”

Founded in 2005 and headquartered in Oakland, California, the United States Commodity Funds LLC is “an issuer of exchange traded commodity products (ETPs).” Notably, the first fund it launched (in 2006) was United States Oil Fund, LP, which is reportedly “the first commodity ETF based on crude oil launched in the United States.”

Bitwise Asset Management, VanEck/SolidX ETFs Applications To Be Reviewed This Month

USCF is currently regulated by the US Commodity Futures Trading Commission (CFTC) and the National Futures Association - under the Commodity Exchange Act (CEA).

Currently, there are several ETFs that have been filed with the SEC, including one submitted by Bitwise Asset Management with NYSE Arca and one by VanEck/SolidX, which was filed through a partnership with Chicago Board of Options Exchange (Cboe).

In March 2019, the SEC postponed its decision on whether to approve ETF applications filed by both VanEck/SolidX and Bitwise Asset Management. The federal securities regulator is now expected to review both ETFs this month.

Cryptocurrency Volatility May Be Affected By ETF Decisions

To date, the SEC has not approved any cryptocurrency ETF applications, however several analysts have argued that one will be approved in the foreseeable future.

According to a recent report from SFOX, a “prime dealer of cryptoassets for sophisticated traders and institutional investors,” the volatility of cryptocurrencies may be affected by “Bitcoin exchange-traded-fund (ETF) decisions,” among other factors such as the expiration of crypto futures contracts, and the discussions during “major” crypto and blockchain conferences such as Consensus which is taking place mid-May

Bitcoin Hashrate Hits New Record as New ASIC Miners Brought Online

Neil Dennis

Bitcoin's hashrate - the computing power dedicated to mining the world's biggest cryptocurrency by market capitalization - hit another record high as thousands of new miners came online in the last few months.

Data from bitcoin mining pool BTC.com showed another milestone level passed. At block height 594,720 , the average hashrate jumped to 85.08 exahashes per second (EH/s), smashing the previous record rate of 77.08 EH/s on September 1.

Mining Difficulty

As ever more powerful mining rigs come online and compete for bitcoin rewards, the hashrate increases as the network's blockchain adjusts its mining difficulty to ensure the time to produce a single block remains the same - around 10 minutes.

On Friday September 13, the difficulty rate also hit a new record high of 11.89 trillion, up from the previous 10.77 trillion as measured on September 1.

Powerful new application-specific integrated circuit (ASIC) miners have an average hash power of about 55 terahashes per second (TH/s). Given that 1 EH/s is equal to 1 million TH/s it can be estimated that since June 14, when the hashrate stood at 53.03, the extra 33 EH/s may be accounted to around 600,000 new ASICs added to the total bitcoin mining pool in those three months.

Just last week, two new Bitmain ASIC models hit the market only to be sold out instantly.

 

Featured Image Credit: Picture Courtesy of Bitmain