Stone Ridge Asset Management, the alternative investment manager of the New York Digital Investment Group, has filed a new prospectus with the US Securities and Exchange Commission to add Bitcoin (BTC) to its mutual funds.
The prospectus for the Stone Ridge Bitcoin Strategy Fund was published on the SEC website on Friday, although the actual filing is dated July 26, 2021. The fund is part of an investment portfolio of Stone Ridge Trust, a Delaware registered open-ended investment company.
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 buying, 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 directly in Bitcoin or other digital assets. “
Filing was made on the SEC Form N-1A, which is required for incorporating open-ended management companies, including mutual funds. Structurally, the fund is very similar to the NYDIG Bitcoin Strategy Fund II, which was submitted in May of this year.
The prospectus further explains that the Fund “expects to have significant holdings of cash, US Treasuries, mortgage-backed securities” and other assets.
With regard to the intended commitment of the fund, the prospectus states:
“The Fund aims to invest in Bitcoin-related assets such that the total value of Bitcoin in which the Fund has economic exposure is between 100% and 125% of the Fund’s net assets.”
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 bought 10,000 BTC in October 2020 as part of its strategic investment initiative. The timing of the purchase coincided with the start of an eight-month uptrend for Bitcoin, which would peak at $ 65,000 in May.
Related: NYDIG wants to enable 650 US banks and credit unions to adopt Bitcoin
Over the past year, more institutional investors have moved into Bitcoin, reflecting widespread mainstream adoption and a growing appetite for digital assets. As Cointelegraph reported, the next wave of institutional adoption could be propelled by financial advisors – a broad category of professionals always on the lookout for new investment horizons. For financial advisors, the bitcoin market has been significantly reduced in risk from a career outcomes perspective.
Bitcoin price is in a clear uptrend this weekend, although analysts continue to warn of overhead resistance near $ 35,000. At the time of writing, BTC was up 6.5% to $ 34,230.
Related: Bitcoin price is pointing to a “megaphone” floor pattern and a breakout towards $ 40,000. down