#What Are the New ETFs Proposed by Cyber Hornet?
Cyber Hornet Trust has submitted a filing to launch three innovative exchange-traded funds (ETFs) that aim to blend traditional equity investments with cryptocurrencies. These ETFs will focus on the S&P 500 index, combined with futures contracts for leading cryptocurrencies like Ethereum, Solana, and XRP, featuring a strategic allocation of 75% in stocks and 25% in digital assets.
The three proposed ETFs include the Cyber Hornet S&P 500 and Ethereum 75/25 Strategy ETF, the Cyber Hornet S&P 500 and Solana 75/25 Strategy ETF, and the Cyber Hornet S&P 500 and XRP 75/25 Strategy ETF. Each of these funds is structured to offer investors a diversified approach, allowing them to capture potential growth in both traditional and digital markets.
#How Will the Investment Strategy Work?
Each ETF is designed to allocate approximately 75% of its assets to large-cap U.S. equities found in the S&P 500 index, with the remaining 25% invested in cryptocurrency futures based on Ethereum, Solana, or XRP. This dual approach aims to provide a balanced investment strategy amid market volatility.
Investors should note that all three ETFs will charge a management fee of 0.95%. Additionally, the funds will implement monthly rebalancing to maintain their target asset allocation. However, adjustments may occur depending on market conditions to optimize returns.
For the crypto component, exposure will come through direct investments and futures contracts. Investors can purchase cryptocurrencies directly via platforms such as Coinbase and Kraken. Furthermore, the management of futures positions will take place through a subsidiary located in the Cayman Islands, with backing provided by short-term U.S. Treasuries.
#What Are the Listing Plans for These ETFs?
If the proposed ETFs receive regulatory approval, they are set to be listed on the Nasdaq exchange. It is important to highlight that shares of these funds will only be available through secondary market transactions, limiting direct redemption options for investors.
Cyber Hornet Trust currently manages another ETF, the S&P 500 and Bitcoin 75/25 Strategy ETF, which was launched in late 2023 and has seen solid interest, with assets surpassing $6 million as of late September.