A new proposed exchange-traded fund from Reality Shares Trust, which is a branch of the Blockforce Capital is going to invest in futures even though it will be part of a broader set of many other conservative investments.
This is according to a filing made on Monday by the company in partnership with NYSE Arca to the U.S. Securities and Exchange Commission (). The company aims to launch the Reality Shares Blockforce Global Currency Strategy .
The Fund Will Not Directly Invest In bitcoin
If the approves the fund, it will invest in a portfolio that includes high-quality and short-term sovereign debt instruments that are listed for on exchanges in the US and are denominated in U.S. dollars, British pounds, euro, Swiss francs, and Japanese yen.
According to the filing, the portfolio will also include money market mutual funds, futures, and other cash equivalents.
Instead of investing in physically settled futures contracts, the fund will invest in cash-settled contracts. This means that when a contract expires, the investor will receive a cash equivalent of its value instead of actual bitcoins.
The filing makes it clear that the fund will not invest directly in the top .
The proposal
“The Adviser initially constructs the Fund’s portfolio by investing approximately (i) an equal-weight of 15 [percent] of the Fund’s net assets in Fixed Income Securities denominated in each Fiat Significant Global Currency; (ii) 15 [percent] of the Fund’s net assets representing notional exposure in Futures and (iii) 10 [percent] of the Fund’s net assets in Money Market Instruments for margin and/or cash management purposes, each as measured at the time of purchase (the ‘Target Portfolio’).”
Adding that:
“the Adviser seeks to reallocate the Fund’s assets approximately to the Target Portfolio on the business day following the date that one or more of the Significant Global Currencies moves by more than 20 [percent] up or down from its original 15 [percent] portfolio equal-weight, calculated as a percentage of the Fund’s net assets.”
However, for a start, the fund plans to invest in futures that are offered by two of the major futures exchanges based in Chicago,and CME. Also, in the future, there is a likely hood that it will look for other futures products.
Published at Wed, 13 Feb 2019 06:17:39 +0000
