July 20, 2024

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 capitalcompany through a series of investments in Bitcoin futures contracts. Please note that the fund does not offer direct investment in Bitcoin or any other cryptocurrency; it only offers investment in futures contracts traded on regulated exchanges. Exchanges must be registered with the SEC and, crucially, the fund will not invest in physically deliverable 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 investment is limited to cash andnon-cryptocurrency payments, there are no requirements for custodial services and for ensuring cryptocurrency reserves. The fund will also hold cash, treasury and fixed income assets, according to the filing. It is planned to issue shares in the amount of $10 without a minimum investment.

Stone Ridge's application is the latest to be submitted toSEC review. The company itself understands the risks inherent in any fund involving cryptocurrency investments. However, if the fund receives regulatory approval, it could likely attract attention from institutional investors looking for alternative ways to invest in the cryptocurrency markets.