Bitcoin futures investment fund prospectus filed at SEC
Stone Ridge, an asset management company, has filed an application with the US Securities and Exchange Commission (SEC) to launch a new investment product related to Bitcoin futures.
According to the securities issue prospectus, the NYDIG Bitcoin Strategy Fund will earn income by investing in bitcoin futures. We are talking about contracts with settlements in fiat currency, which are traded on exchanges registered with the US Commodity Futures Trading Commission (CFTC). The fund does not intend to invest directly in cryptocurrency or in BTC futures with physical delivery, like with Bakkt.
In addition to Bitcoin futures contracts, the NYDIG Bitcoin Strategy Fund plans to include “significant cash” and US government securities in its assets to provide liquidity. Nevertheless, in the prospectus Stone Ridge warned that investing in fund shares should be considered as speculative and risky.
“Bitcoin and its futures are historically very volatile. You must be prepared to lose all your investments, ”the company emphasized.
The fund will issue 100 thousand shares at a price of $ 10 without limiting the minimum purchase amount. Securities will not be traded on an exchange. To provide investors with liquidity, the fund will offer a quarterly repurchase of 5% of the total issue. The company does not give guarantees that all investors will be able to sell the desired amount of securities.
Recall that the SEC is awaiting approval of the Bitwise Asset Management application for the launch of a Bitcoin-based Exchange Traded Fund (ETF), the probability of which the regulator approved before was estimated at 0.01%. VanEck and SolidX withdrew their application for Bitcoin-ETF, without waiting for the decision of the Commission.