ETF issuer Defiance has filed with the SEC to launch the first ETF that invests in private companies solely through swap contracts, aiming to offer investors public market exposure to private firms while raising concerns about counterparty risk and valuation transparency. The application is pending regulatory review.
Defiance, an ETF issuer, has filed with the U.S. Securities and Exchange Commission (SEC) to launch what would be the first exchange-traded fund investing in private companies only through swap contracts, according to Crypto Briefing.
The fund is meant to give investors exposure to private companies through public market trading. But it also brings up concerns around counterparty risk and how transparent valuations really are.
If approved, the ETF would let investors get exposure to private companies without directly holding unlisted shares.
The application is still pending regulatory review.
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