ETF issuer REX Shares aims to make its presence known in the uber-popular cryptocurrency space with two new Bitcoin ETF filings, one of which is a bull fund, while the other will offer short (inverse) exposure to Bitcoin prices.
REX filed with the SEC to bring the REX Bitcoin Strategy ETF and REX Short Bitcoin Strategy ETF to market. No tickers were mentioned in the filing, nor was there any word of what stock exchange they’ll trade on. The funds aim to help investors gain long and short exposure to the cryptocurrency, respectively.
As ETF Trends notes, the funds won’t invest directly in BTC itself, however:
While the two actively managed ETFs are based on the Bitcoin asset, the two ETFs do not invest directly in Bitcoins. They only seek to provide exposure to price movements of Bitcoins.
The Bitcoin Strategy ETF will hold a portfolio of financial instruments that provide long exposure to movements in the value of bitcoin, along with a portfolio of fixed income instruments. The fund will obtain indirect exposure to Bitcoin price movements through the use of financial instruments that provide access to the price movements, such as futures contracts linked to the price of Bitcoin or an index.
The REX Short Bitcoin Strategy ETF will take a similar strategy, except will use short contracts on futures exchanges.
This setup is likely crafted to avoid SEC scrutiny that other Bitcoin ETFs have faced in the past. Perhaps it will prove fruitful and regulators will finally allow the first official Bitcoin ETF to market after all.
Bitcoin as trading at $4,605.78 on Wednesday morning, down 0.91%. BTC has gained over 375% year-to-date.