September 20, 2020

SEC filed a new application for registration of Bitcoin ETF

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On October 2, the US Securities and Exchange Commission (SEC) received another application for registration of Bitcoin ETF.

The fund, known as the NYDIG Bitcoin Strategy Fund, was introduced by Stone Ridge, an asset management company.

The purpose of creating a fund is to increase capitalcompanies through a series of investments in Bitcoin futures contracts. Note that the fund does not offer to invest directly in Bitcoin or any other cryptocurrency, it offers to invest only in futures contracts with trading on regulated exchanges. Exchanges must be registered with the SEC, and, most importantly, the fund will not invest in physically sound financial instruments.

Futures like those offered by Bakkt,return cryptocurrency after the expiration of the contract. But for the NYDIG Bitcoin Strategy Fund, investments will only be made in futures contracts that are priced at cost.

Since investments are limited to cash, andnon-cryptocurrency settlements, there are no requirements for custodial services and for the provision of cryptocurrency reserves. According to the application, the fund will also store cash and treasury and fixed-income assets. It is planned to issue shares in the amount of $ 10 without a minimum investment.

The Stone Ridge application is the last one submitted atSEC review. The company itself understands the risks inherent in any fund related to investments in cryptocurrency. However, if the fund receives approval from the regulator, it is likely to attract the attention of institutional investors looking for alternative ways to invest in cryptocurrency markets.