New ETF Proposal Allocates 25% of Its Portfolio to Bitcoin Futures

A newly proposed exchange-traded fund plans to allocate 25% of its entire portfolio to bitcoin futures.

Bitcoin ETF on NYSE Arca

Realty Shares ETF Trust, a subsidiary of US-based asset manager Blockforce Capital, filed a registration form with the Securities and Exchange Commission on Monday to list its “Reality Shares Blockforce Global Currency Strategy ETF” on NYSE Arca. According to the application, the Fund would invest in sovereign debt instruments, money market mutual funds or other cash equivalents, and cash-settled bitcoin futures contracts.

“The Fund expects to obtain exposure to Bitcoin Futures by investing up to 25% of its total assets, as measured at the end of every quarter of the Fund’s taxable year, in a wholly-owned and controlled Cayman Islands subsidiary,” read the registration form. “However, the Adviser will seek to limit the Subsidiary’s investment in Bitcoin Futures, so the Fund’s aggregate notional exposure to Bitcoin Futures is limited to 15% of the Fund’s net assets at the time of investment.”

At the same time, the form explained, the Fund would allocate 15% of its net assets in fiat-denominated Fixed Income Securities and 10% of its net assets in Money Market Instruments for margin and cash management purposes.

Realty Shares’