The decision came after the Securities and Exchange Commission (SEC) approved a third-party registration statement for XBT Provider, an independent fund manager established by Barry Silbert’s Digital Currency Group.
As Bitcoin continues to grow in popularity, a new class of cryptoasset manager has emerged. Just like hedge funds for traditional assets, crypto managers are now targeting individual cryptocurrency markets with their investments. However, unlike traditional hedge funds, which often target large, relatively stable investments, crypto managers don’t intend to ride out the volatility of cryptocurrency markets. Instead, they are more interested in short-selling cryptocurrencies and selling them off at the top when prices are at their highest.
On June 26, Grayscale Investments registered the first-ever Bitcoin Investment Trust with the U.S. Securities and Exchange Commission (SEC). The trust—which is an open-ended fund that invests exclusively in bitcoin—offers to investors the opportunity to gain exposure to the price of bitcoin without the high risk of investing directly in the bitcoin ecosystem. That’s right, with the Bitcoin Investment Trust, you don’t have to worry about the bitcoin network exploding and destroying your investment.. Read more about stone ridge bitcoin fund and let us know what you think.
Revised York Digital Investment Group’s alternative investment manager, Stone Ridge Asset Management, has filed a new prospectus with the Securities and Exchange Commission, or SEC, to include Bitcoin (BTC) in its open-end mutual fund.
The prospectus for Stone Ridge Bitcoin Strategy Fund was posted on the Securities and Exchange Commission’s website on Friday, but the real filing date is July 26, 2021. The Fund is part of Stone Ridge Trust’s investment portfolio, which is a Delaware-based open-end investment firm.
The Stone Ridge Bitcoin Strategy Fund’s main investment goal, according to the prospectus, is “capital appreciation.” As stated below, the Fund seeks exposure to Bitcoin via futures markets rather than spot purchases:
“Bitcoin futures contracts and pooled investment vehicles that invest directly or indirectly in bitcoin (collectively, “bitcoin-related assets”) are the primary vehicles through which the Fund pursues its investment strategy. The Fund does not make direct investments in bitcoin or other digital assets.”
The submission was filed on SEC Form N-1A, which is needed for open-end management firms, such as mutual funds, to be established. The Fund is structured similarly to the NYDIG Bitcoin Strategy Fund II, which was registered in May of this year.
The prospectus further states that the Fund “expects to have substantial holdings of cash, US government securities, mortgage-backed securities, and other assets.”
According to the prospectus, the Fund’s objective exposure is as follows:
“The Fund aims to engage in bitcoin-related investments to the extent that the total value of bitcoin to which the Fund has economic exposure is between 100% and 1250% of the Fund’s net assets.”
Stone Ridge submitted a prospectus for its Diversified Alternatives Fund earlier this year, which aimed to invest in Bitcoin and other alternative assets.
Stone Ridge bought 10,000 BTC in October 2020 as part of its strategic investment strategy, according to Cointelegraph. The purchase occurred at the start of an eight-month rise in Bitcoin’s value, which would culminate in a high around $65,000 in May.
NYDIG is working with 650 US banks and credit unions to promote Bitcoin acceptance to them.
Over the last year, more institutional investors have been acquainted with Bitcoin, indicating widespread acceptance and a rising demand for digital assets. Financial advisors — a wide group of specialists who are constantly searching for new investment possibilities – may be driving the next wave of institutional adoption, according to Cointelegraph. From the viewpoint of career outcomes, the Bitcoin market has been substantially de-risked for financial advisors.
Although experts continue to warn of overhead resistance around $35,000, the Bitcoin price is in a strong rise this weekend. BTC was up 6.5 percent to $34,230 at the time of writing.
Bitcoin’s pricing is indicating a’megaphone’ bottom pattern and a breakthrough toward $40,000.
A $10 billion asset manager has registered an investment fund for Bitcoin with the SEC. The fund, which has been granted the ticker “BITX” will be managed by Grayscale Investments, the largest Bitcoin and Blockchain investment firm in the United States. The fund’s manager, Barry Silbert, said that the fund would provide investors with exposure to Bitcoin and other digital assets via several investment strategies. “This marks an exciting next step in the evolution of digital assets and the expansion of the virtual currency market. We have been closely monitoring this asset class for some time, and are excited to now have the opportunity to participate,” he said.. Read more about cryptocurrency mutual fund and let us know what you think.
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