Cryptex ETF Proposal Caps Staking at 33% of Crypto Assets

Cryptex Finance, LLC would cap staking at 33% of portfolio crypto assets in its proposed exchange-traded fund while giving its own token a minimum weight above the index allocation.

The proposed Cryptex Digital Market Cap ETF is expected to list on Nasdaq under BAGZ, subject to notice of issuance. Cryptex filed the sixth pre-effective amendment to its registration statement on Oct. 23. The registration remains preliminary, and securities cannot be sold until it becomes effective.

Under the proposal, the Cryptex Finance (CTX) token must account for at least 6.5% of the fund portfolio. The Cryptex Digital Market Cap Index, which the fund is designed to track, gives CTX a fixed 2% weight. The proposal identifies the sponsor’s interest in CTX as a conflict.

As of the Oct. 23 prospectus, assets the fund intends to stake represented 26.82% of its portfolio crypto assets. That figure describes assets designated for staking under the proposal; it does not establish that the fund has staked them. The proposed 33% limit applies to portfolio crypto assets.

An asset table dated Sept. 8 includes 36 index constituents and 24 assets in the proposed fund portfolio after screening. Proposed fund weights include 4.41% for XRP, 3.26% for Shiba Inu (SHIB) and 1.87% for Zcash (ZEC). The same percentages appeared in the Sept. 30 amendment, so the Oct. 23 filing does not establish a new allocation to those assets.

The index and fund also use different screening thresholds. The index has a 0.15% removal threshold for a constituent, while the proposed fund excludes an asset if its resulting weight would be below 0.50%. Those screens, together with the CTX minimum, leave the proposed fund portfolio different from the index.

All listed weights remain proposed allocations. The registration statement must become effective before the fund can sell securities.