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    Crypto News: Oil and Bitcoin in One Fund? USCF Files Innovative ETF Plan

    Story Highlights
    • USCF has filed for an innovative Oil Plus Bitcoin ETF, delivering 2x exposures.

    • The fund will invest in Bitcoin Futures, including micro futures, and Bitcoin-related securities.

    • However, this inititiave will expose potential risks for crude oil that may affect its price.

    USCF (United States Commodity Funds) has filed for an innovative “Oil Plus Bitcoin ETF.” The initiative is drafted to provide investors with 100% exposure to crude oil and 100% exposure to Bitcoin in a single ETF fund. 

    USCF Files for Oil Plus Bitcoin ETF

    The investment management company, focusing on commodity-based exchange-traded products (ETPs), including exchange-traded funds (ETFs), will now deliver 2x exposure in oil and Bitcoin ETFs. 

    The fund will invest in Bitcoin Futures, including micro futures, and Bitcoin-related securities, such as Bitcoin ETPs. According to the filing, it will invest only in cash-settled bitcoin futures traded on any U.S. and non-U.S. exchanges and shares of Bitcoin ETPs listed on a U.S. national securities exchange.

    Senior analyst at Bloomberg, Eric Balchunas, said, “USCF filing for a Oil Plus Bitcoin ETF, which will give 100% exposure to crude oil and 100% exposure to bitcoin. So a 2x ETF just dividend bt two assets a la the return stacked ETFs.” 

    What Does This Mean for USCF?

    With the new initiative, the fund’s performance will be driven simultaneously by price movements in both crude oil and Bitcoin. It will allow investors to gain leveraged exposure to both commodities and cryptocurrencies through one project. 

    It bridges traditional energy commodities with digital assets, and it allows the fund to obtain greater exposure to Oil Futures and Bitcoin Investments. It ensures to maintain compliance with U.S. federal income tax requirements applicable to investment companies while expanding the trade.

    The filing stated, “The Fund intends to invest in Oil Futures and Bitcoin Futures, as well as certain Bitcoin ETPs, primarily through a wholly-owned subsidiary of the Fund incorporated in the Cayman Islands, USCF Cayman Commodity 10 (the “Subsidiary”).

    “The Fund will not invest more than 25% of its total assets in the Subsidiary, as determined at the end of each fiscal quarter,” it added. 

    Risk Associated with the New Initiative

    There are potential risks for crude oil that may affect its price. Additionally, the Fund’s indirect investment in bitcoin, through futures contracts and Bitcoin ETPs, exposes it to the unique and substantial risks of this emerging innovation.

    The 2x structure substantially increases risk exposure, stretching both potential rewards as well as losses.  With volatility and daily compounding effects, it could also contribute to potentially complex performance outcomes.

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    FAQs

    What is the USCF Oil Plus Bitcoin ETF?

    The USCF Oil Plus Bitcoin ETF offers 100% exposure to crude oil and 100% to Bitcoin in a single fund, combining commodities and crypto in a 2x leveraged structure.

    How does the Oil Plus Bitcoin ETF work?

    The ETF invests in oil futures, Bitcoin futures, and Bitcoin ETPs, using a Cayman Islands subsidiary for tax efficiency while capping subsidiary exposure at 25% of assets.

    Why combine oil and Bitcoin in one ETF?

    This dual-exposure fund bridges traditional commodities and crypto, appealing to investors seeking diversified, high-growth asset classes in a single product.

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