Final answer:
False. ETFs that invest in commodities or currencies are indeed exempt from registration as investment companies. They are instead regulated under different legal frameworks, specific to the nature of their underlying assets.
Step-by-step explanation:
It is accurate to say that exchange-traded funds (ETFs) that make currency or commodity investments are exempt from the requirement to register as investment companies. If these ETFs invest in commodities, they are governed by the Commodities Exchange Act; if not, they are not regarded as investment firms under the Investment Company Act of 1940. These ETFs are frequently organized as trusts or partnerships. Furthermore, currency exchange-traded funds (ETFs) are governed differently from investing businesses and are recognized as Grantor Trusts.
Such ETFs are designed to track the performance of a commodity or currency and are typically backed by the actual commodity itself or currency denominated financial instruments, providing an alternative method of investing in these assets without directly purchasing the physical commodity or foreign currency.