• AdvisorShares has filed an application for a Bitcoin ETF

  • AdvisorShares, an investment management firm, has filed with the Securities and Exchange Commission (SEC) for a bitcoin (BTC) futures exchange traded fund (ETF).

    The Bethesda, Maryland-based firm already provides a wide range of ETFs.

    Advisor Shares stated in a prospectus submitted to the SEC that the ETF would seek to achieve its investment objectives by “investing all or substantially all of its assets in I bitcoin exchange-traded futures contracts (“Bitcoin Futures”) and (ii) short duration fixed income securities and cash or cash equivalent investments.”

    They went on to say that they may also invest in exchange traded products (ETPs) and ETFs based outside of the United States. They also stated that the fund would not invest directly in Bitcoin. According to the prospectus, it will instead invest in BTC futures through a subsidiary organized under Cayman Islands law.

    Meanwhile, Morgan Creek Capital Management will serve as the ETF’s investment sub-adviser. Morgan Creek will use its research to implement the fund’s investment strategies in this capacity. It will be in charge of allocating the fund’s assets and determining when BTC’s price will rise and fall.

    Increase in Bitcoin ETF filings

    At the time of publication, the SEC was dealing with at least a dozen applications for BTC ETFs and had yet to approve a single one. Several of them, including those from Galaxy Digital and asset management behemoth Invesco, have only been announced in the last few weeks. Meanwhile, some of them, such as WisdomTree, who filed much earlier in the year, are still awaiting a final decision from the SEC.

    Earlier this month, SEC Chair Gary Gensler stated that he expected “filings relating to exchange-traded funds under the Investment Company Act…

    “When combined with other federal securities laws, the 1940 Act provides significant investor protections.”

    He went on to say:

    “Given these important safeguards, I eagerly await the staff’s review of such filings, especially if they are limited to these CME-traded Bitcoin futures.”

    The firms that have filed for BTC ETFs are standing firm in their applications; however, some of those filing for Ether (ETH) futures ETFs are not. As previously reported on August 19, investment firm VanEck filed with the SEC for an ETH ETF. However, by the 20th of August, the company had withdrawn its application. ProShares, another investment firm, also withdrew their application for an ETH futures ETF just days after filing.

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