Stone Ridge Asset Management, the parent company of New York Digital
Investment Group, or NYDIG, has been actively pursuing new investment
vehicles for Bitcoin. On Friday, Stone Ridge's open-end mutual fund
revealed a new Bitcoin-focused investment strategy.
Stone Ridge Asset Management, the alternative investment manager
behind New York Digital Investment Group, has filed a new prospectus
with the United States Securities and Exchange Commission, or SEC, to
add Bitcoin (BTC) to its open-end mutual fund.
The prospectus for Stone Ridge Bitcoin Strategy Fund appeared on the SEC website on Friday, though the actual filing
is dated July 26, 2021. The Fund is part of an investment portfolio of
Stone Ridge Trust, an open-end investment company registered in
Delaware.
According to the prospectus, the primary investment
objective of the Stone Ridge Bitcoin Strategy Fund is “capital
appreciation.” The Fund seeks exposure to Bitcoin via futures markets as
opposed to spot purchases, as explained below:
“The Fund
pursues its investment strategy primarily by investing in bitcoin
futures contracts and in pooled investment vehicles that invest directly
or indirectly in bitcoin (collectively, “bitcoin-related investments”).
The Fund does not invest in bitcoin or other digital assets directly.”
The
filing was made under SEC Form N-1A, which is required for establishing
open-end management companies, including mutual funds. In terms of
structure, the Fund is very similar to the NYDIG Bitcoin Strategy Fund
II filed in May of this year.
It
is further explained in the prospectus that the Fund “expects to have
significant holdings of cash, U.S. government securities,
mortgage-backed securities” and other assets.
Regarding the Fund's target exposure, the prospectus states:
"The
Fund seeks to invest in bitcoin-related investments so that the total
value of the bitcoin to which the Fund has economic exposure is between
100% and 125% of the net assets of the Fund."
Earlier this year, Stone Ridge filed a prospectus for its Diversified Alternatives Fund, which sought exposure to Bitcoin and other alternative assets.
As Cointelegraph reported, Stone Ridge purchased 10,000 BTC in October 2020
as part of its strategic investment initiative. The timeline of the
purchase coincided with the beginning of an eight-month uptrend for
Bitcoin that would see its value peak near $65,000 in May.
Related: NYDIG set to bring Bitcoin adoption to 650 US banks and credit unions
More
institutional investors have gained exposure to Bitcoin over the past
year, reflecting broad mainstream acceptance and a growing appetite for
digital assets. As Cointelegraph reported, the next wave of institutional adoption
could be driven by financial advisers – a broad category of
professionals who are always looking for new investment horizons. For
financial advisers, the Bitcoin market has been significantly de-risked
from the perspective of career outcomes.
The Bitcoin price is in a clear uptrend this weekend, though analysts continue to warn of overhead resistance near $35,000. At the time of writing, BTC was up 6.5% to $34,230.
source link : https://cointelegraph.com/news/10b-asset-manager-registers-new-bitcoin-fund-with-sec
