Mutual funds provider ProFund aims to enable crypto exposure for investors without actually buying Bitcoin.
The United States-based investment management firm ProFunds announced
the launch of Bitcoin Strategy ProFund (BTCFX), one of the first
publicly available mutual funds or ETFs that performs in parallel with
Bitcoin (BTC).
ProFunds provides an alternative to the traditional methods of holding
cryptocurrencies via wallets or crypto exchanges with this service.
Sharing
details on how ProFunds plans to enable investment in Bitcoin
performance through mutual funds, ProFunds CEO Michael L. Sapir said:
“Compared
to directly buying bitcoin, which may involve opening a new account
with an unregulated party, this ProFund offers investors the opportunity
to gain exposure to Bitcoin through a form and investment method that
tens of millions of investors are familiar with.”
While
this venture promises access to Bitcoin investments in traditional
forms, BTCFX “principally invests in Bitcoin futures contracts,”
avoiding any direct investments to Bitcoin. ProFunds also warned
investors on the risk of investing in crypto derivatives, citing
significant price volatility and lack of liquidity.
Related: US government delves deeper into crypto accountability with $10M bounty
The crackdown against crypto businesses has seen a steep incline in the US. Cointelegraph reported the Biden administration’s decision to improve its tracing capabilities against crypto payments earlier this month.
The
ruling government announced to offer $10 million in bounty to identify
bad actors responsible for cyberattacks on critical infrastructure and
ransomware. Crypto exchange Binance has also received its fair share of regulatory scrutiny by the IRS and Justice Department towards illegal trading activities.
source link : https://cointelegraph.com/news/bitcoin-strategy-profund-aims-to-tackle-regulatory-barriers-for-investors
