The proposed Cryptex Digital Market Cap ETF would assign the sponsor’s Cryptex Finance (CTX) token at least 6.5% of the portfolio, above its 2% index weighting, according to an Oct. 23 filing.
Cryptex Finance, LLC filed its sixth pre-effective amendment with the U.S. Securities and Exchange Commission (SEC) for the fund, which is designed to track the Cryptex Digital Market Cap Index. The document names BAGZ as the proposed Nasdaq ticker, with listing dependent on notice of issuance. The fund can begin selling shares only after the SEC makes its registration statement effective.
The proposed staking rules set a ceiling of 33% of the portfolio’s crypto assets. The filing designates assets representing 26.82% of the fund’s portfolio crypto assets for staking.
The filing’s Sept. 8 table shows 36 constituents in the index and 24 assets in the screened fund basket. Under the index rules, a constituent is removed if its weight falls below 0.15%. For the fund, an asset is excluded when its resulting allocation would be less than 0.50%. Alongside CTX’s minimum weight, those different screens mean the proposed fund basket does not simply reproduce the index.
The prospectus lists the sponsor’s financial interest in CTX among potential conflicts. The token’s proposed minimum fund weight is 4.5 percentage points above its fixed index allocation. The next step is for the registration statement to become effective before the fund can sell shares.
