Investment management company Stone Ridge is trying to register a new Bitcoin futures offering with the United States Securities and Exchange Commission.
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 investment objective to achieve capital appreciation by investing in BTC futures contracts, according to an Oct. 2 filing.
Cash-settled BTC futures onlyDetailing 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.
"'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.
Worth noting, 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 futuresIn late September, Bakkt's much-anticipated physically settled Bitcoin futures trading went live for trading on the Intercontinental Exchange.
That same month, major cryptocurrency exchange Binance launched two futures testnet platforms - inviting users to participate in a 10,000 Binance Coin trading competition.
The Chicago Mercantile Exchange Group is adding options to its Bitcoin futures contracts in the first quarter of 2020, pending regulatory review.
"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."
Investment Firm Files Prospectus for New BTC Futures Fund With US SEC
Published on Oct 3, 2019
by Cointele | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.