The asset management company Stone Ridge has applied to the US Securities and Exchange Commission (SEC) for an open-end mutual fund to invest in Bitcoin. “This is a big problem. The Stone Ridge archives opened the door for adding Bitcoin to every mutual fund.
Stone Ridge wants its mutual fund to invest in Bitcoin
Stone Ridge Trust filed the N-1A form with the U.S. Securities and Exchange Commission (SEC) last week. The document is expected to take effect on April 26 and is related to the Stone Ridge Diversified Alternative Fund.
The document details that the fund “seeks to generate total returns through multiple investment strategies. We believe these strategies have attractive return potential and are diversifying from stocks and bonds.” “These strategies include reinsurance, market risk transfer, Style premium investments, alternative loans, single-family real estate, healthcare royalties and Bitcoin.”
For Bitcoin investment strategies, the document states:
[The fund] Attempting to obtain the risk of bitcoin price by selling put options on bitcoin futures contracts to generate returns. This strategy can also invest in collective investment vehicles that you invest in Bitcoin, such as registered or private funds.
Anthony Scaramucci, the founder of another asset management company, Skybridge Capital, commented on the document last week. Skybridge Capital itself owns about one billion U.S. dollars worth of Bitcoin in its Bitcoin fund. “An important development of Bitcoin. Stone Ridge applied to the US Securities and Exchange Commission (SEC) to become the first open-end mutual fund to buy Bitcoin.” He wrote. Scaramucci has also seen a large amount of demand for Bitcoin from his customers and expects that the price of BTC will reach $100,000 by the end of the year.
He pointed out: “Stone Ridge will be able to start buying bitcoin on April 26 (when the prospectus becomes effective).”
this is a big problem. The Stone Ridge archives opened the door for adding Bitcoin to each mutual fund (if they want to).
Stone Ridge founder Ross Stevens also founded the Bitcoin-only financial services company New York Digital Investment Group (NYDIG). Earlier this month, the company applied to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF). Stevens recently said that he believes “a wall” has entered the asset class. NYDIG already owns more than $6 billion in Bitcoin, and the company expects to have more than $25 billion in cryptocurrency by the end of the year.
What do you think of mutual funds investing in Bitcoin? Let us know in the comments section below.
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