$ 10 billion asset manager registers new Bitcoin fund with SEC

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Stone Ridge Asset Management, the alternative investment manager behind New York Digital Investment Group, has filed a new prospectus with the United States Securities and Exchange Commission, or SEC, to add Bitcoin (BTC) to its mutual fund with variable capital.

The Stone Ridge Bitcoin Strategy Fund prospectus appeared on the SEC website on Friday, although the effective filing was dated July 26, 2021. The fund is part of an investment portfolio of Stone Ridge Trust, a company of variable capital investment registered in Delaware.

According to the prospectus, the primary investment objective of the Stone Ridge Bitcoin Strategy Fund is capital appreciation. The Fund seeks exposure to Bitcoin through the futures markets rather than spot purchases, as explained below:

The Fund pursues its investment strategy by investing primarily in bitcoin futures and 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.

The deposit was made under the SEC N-1A form, which is required for the establishment of management companies with variable capital, including mutual funds. In terms of structure, the fund is very similar to the NYDIG Bitcoin Strategy Fund II filed in May of this year.

It is further explained in the prospectus that the Fund expects to hold significant holdings of cash, US government securities, mortgage backed securities and other assets.

Regarding the target exposure of the Fund, the prospectus specifies:

“The Fund seeks to invest in bitcoin related investments such that the total value of bitcoin to which the Fund has economic exposure is between 100% and 125% of the net assets of the Fund.”

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 timeline of the purchase coincided with the start of an eight-month uptrend for Bitcoin that would see its value peak at nearly $ 65,000 in May.

Related: NYDIG Set To Bring Bitcoin Adoption To 650 U.S. Banks And Credit Unions

More and more institutional investors have gained exposure to Bitcoin over the past year, reflecting widespread acceptance by the general public and a growing appetite for digital assets. As Cointelegraph reported, the next wave of institutional adoption could be driven by financial advisers, a broad category of professionals who are always on the lookout for new investment horizons. For financial advisers, the Bitcoin market has shrunk considerably from a career outcome perspective.

Bitcoin’s price is in a clear uptrend this weekend, although analysts continue to warn of air resistance near $ 35,000. At the time of writing, BTC was up 6.5% to $ 34,230.

Related: Bitcoin Price Hints at Lower ‘Megaphone’ Model and Breakout Towards $ 40,000

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