An ETF firm based in Connecticut is launching a new fund that will invest in bitcoin-based derivatives and other exchange products, public records reveal.
REX ETFs, founded in 2014, filed to create the "REX Bitcoin Strategy Fund" yesterday, according to a new submission with the US Securities and Exchange Commission (SEC). Instead of investing directly in the cryptocurrency itself, the fund intends to buy bitcoin futures contracts and exchange-traded notes in a bid to create exposure to market.
The firm's initial prospectus states:
Ahead of the filing, REX announced that it was creating a subsidiary dedicated to the development of investment products built around digital assets like bitcoin. In statements, representatives of the firm indicated that it would look to create multiple products in the years ahead.
"We believe cryptocurrencies are a phenomenal innovation that will impact finance and investing for decades to come," REX CEO Greg King said.
The filing represents latest effort to capitalize on the growing momentum behind bitcoin derivatives.
At the same time, the SEC has displayed a degree of reticence when it comes to approving at least some bitcoin-tied investment products, as shown perhaps most notably in its rejection of an ETF proposed by investors Cameron and Tyler Winklevoss.
The SEC has since moved to review that decision, though it's unclear at this time whether the agency will ultimately approve it.
Image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.