Stone Ridge Asset Management has filed a prospectus with the regulatory watchdog, U.S Securities, and Exchange Commission to launch a new Bitcoin futures fund.
Dubbed by the name of the NYDIG Bitcoin Strategy Fund, the prospectus was filed by the firm with the regulator for its highly anticipated cash-settled Bitcoin futures fund. The official announcement revealed that the platform would offer one hundred thousand futures shares of $10 each. To induce more and more customers, there is no limit on minimum purchases. The initial cap on its net assets will be $25 million.
The firm stated that the new fund would invest in futures traded on crypto exchanges registered with the U.S Commodity Futures Trading Commission (CFTC). The fund will restrain itself from dealing in physically settled Bitcoin futures, similar to the one offered by Bakkt, which was launched last week. The fund will also not get indulged in the investment of Bitcoin and other digital assets directly but will rely on Bitcoin as an unprecedented reference asset.
With an aim to lend support to the fund, Stone Ridge will purchase Bitcoin futures equivalent to the fund’s total value on a one-to-one basis. It will also club substantial amounts of cash, government securities, and business securities to maintain liquidity, offer collateral as well as leverage.
The prospectus filed by the firm addresses Bitcoin and Bitcoin futures as speculative assets and gives a warning stating that “Bitcoin was developed within the last decade and, as a result, there is little data on its long-term investment potential.” The details given by Stone Ridge in the prospectus are liable to change states the prospectus.
About Stone Ridge
New York-based, Stone Ridge Asset Management company works as an investment management enterprise that lends portfolio management services and investment advisory services to individuals, institutions, trusts, private funds, as well as charitable organizations. Founded in the year 2012, the company serves a wide customer base in the United States and China. As of August 30, the firm claimed to have $15 billion of assets under management (AUM).