Investment Firm Files Prospectus for New BTC Futures Fund With US SEC

Published at: Oct. 3, 2019

Investment management company Stone Ridge is trying to register a new Bitcoin (BTC) futures offering with the United States Securities and Exchange Commission (SEC).

The new fund is called NYDIG Bitcoin Strategy Fund and describes itself as “a non-diversified, closed-end management investment company that continuously offers its shares,” with an objective to achieve capital appreciation by investing in BTC futures contracts, according to an Oct. 2 filing.

Cash-settled BTC futures only

Detailing its investment strategy, the company noted that the fund will only invest in cash-settled BTC futures traded on commodity exchanges registered with the U.S. Commodity Futures Trading Commission, avoiding direct investments in Bitcoin and other digital currencies. The file explained:

“‘Cash-settled’ means that when the relevant future expires, if the value of the underlying asset exceeds the futures price, the seller pays to the purchaser cash in the amount of that excess, and if the futures price exceeds the value of the underlying asset, the purchaser pays to the seller cash in the amount of that excess.”

The proposed maximum offering price per the fund’s share is $10, while its initial capital is $25 million. The fund does not provide assurance that its investments in BTC futures will appreciate in value or on average, as well as that changes in the value of the fund’s BTC futures will track the changes in Bitcoin’s price, the filing notes.

Industry players exploring BTC futures

In late September, Bakkt’s much-anticipated, physically settled Bitcoin futures trading went live for trading on the Intercontinental Exchange (ICE). The platform was the first of its kind to receive approval from United States regulators and is a product of ICE, the operator of the New York Stock Exchange.

That same month, major cryptocurrency exchange Binance launched two futures testnet platforms — inviting users to participate in a 10,000 Binance Coin (BNB) trading competition.

Meanwhile, the Chicago Mercantile Exchange Group is adding options to its Bitcoin futures contracts in the first quarter of 2020, pending regulatory review. Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products, said:

"Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their bitcoin price risk."

Tags
Bitcoin
United States
Sec
Markets
Trading
Cryptocurrencies
Investments
Futures
Related Posts
VanEck Now Offering Bitcoin Financial Product for Institutional Investors
The CEO of investment management firm VanEck Associates, Jan Van Eck, said that the company is now offering a type financial product with exposure to Bitcoin (BTC). In an interview with CNBC on Sept. 11, Van Eck said that the product offered by the firm is a broker-traded fund and is currently not available to the public, but to institutional investors only. Van Eck further specified that it will trade over-the-counter and will not trade on a national securities exchange. The broker-traded fund is called VanEck SolidX Bitcoin Trust 144A Shares. Caveats to get exposure to Bitcoin Qualified investors that …
Etf / Sept. 11, 2019
Report From Former CFTC Chairman Calls for Advanced Crypto Regulations
A recent report published for the Brookings Institution is calling for enhanced regulations on cryptocurrencies. The report was authored by Harvard University fellow Timothy Massad, who served as chairman of the United States Commodity Futures Trading Commission (CFTC) during the administration of Pres. Barack Obama. The report dubbed “It’s time to strengthen the regulation of crypto-assets” addresses the purported need for better regulation on digital currencies, the illicit use of cryptocurrencies, as well as measures for reducing the risk of cyber attacks. The report also provides direct recommendations of how to improve existing cryptocurrency regulations. Per the report, there is …
Bitcoin / March 19, 2019
NYSE Chair Says Survival of Digital Currencies Is ‘Unequivocal’
New York Stock Exchange (NYSE) chairman Jeffrey Sprecher expressed optimism about the survival of digital currencies as an asset class, business news outlet Barron’s reported Nov. 27. Speaking at the Consensus Invest conference, Sprecher — who is also the CEO of Intercontinental Exchange (ICE) — said that when he saw headlines asking “Will digital assets survive?,” he would say that “the unequivocal answer is yes.” “We’re kind of agnostic to price,” Sprecher added. On stage at the Consensus Invest event in New York, Sprecher was accompanied by his wife and the CEO of cryptocurrency platform Bakkt, Kelly Loeffler. Bakkt is …
Bitcoin / Nov. 27, 2018
SkyBridge Capital’s Anthony Scaramucci expects a pro-crypto presidential candidacy
Anthony Scaramucci, the founder of the hedge fund SkyBridge Capital, thinks that the next United States presidential candidate will likely be pro-cryptocurrency, given that the U.S. Securities and Exchange Commission (SEC) recently announced the approval of a fourth Bitcoin (BTC) futures exchange-traded fund (ETF). During an interview at SALT’s Crypto Bahamas conference, Scaramucci told Cointelegraph that he has been bullish on a pro-crypto presidential candidate since the SEC approved Bitcoin futures under the Securities Act of 1933 (‘33 Act) and the Securities Act of 1934 ('34 Act). He added: “The Congress is indicating that they are more crypto-friendly. You now …
Decentralization / May 5, 2022
Erik Voorhees tips $40K BTC by June, but little consensus among pundits
There is little agreement among Bitcoin’s commentators over the last few weeks, with crypto execs, research analysts and billionaire investors offering wildly different takes on what's in store for Bitcoin for the year ahead. One crypto exchange founder expects Bitcoin (BTC) to spike to $40,000 by the “summer” of 2023, while a Bitcoin billionaire has renewed his bullish $250,000 BTC price prediction for the year. Erik Voorhees — $40,000 by the “summer” Erik Voorhees, founder and CEO of cryptocurrency exchange ShapeShift, was optimistic about a potential recovery of Bitcoin’s price during an interview with Bankless on Jan. 2, stating he …
Adoption / Jan. 3, 2023