New York-based Asset management firm Stone Ridge filed a prospectus on Wednesday with the Securities and Exchanges Commission (SEC) for a new Bitcoin futures fund, called the “NYDIG Bitcoin Strategy Fund”.
The fund’s objective is to achieve capital appreciation by investing in cash-settled Bitcoin futures contracts. According to Stone Ridge, the fund will not invest in physically-settled Bitcoin futures contracts or in Bitcoin or any other cryptocurrency. The fund will also aim to include large holdings of cash and US government securities. To a lesser extent, it will also include corporate cash and fixed-income investments.
According to the filing, 100,000 futures shares will be offered to eligible investors as determined by Stone Ridge. Initially, the shares will be offered at a price of $10 per share, with no minimum purchase limit set.
The asset management firm also warned investors that Bitcoin and Bitcoin futures are a relatively new asset class, which makes them highly volatile and subject to “unique and substantial risks”. Stone Ridge also warned that investors should be prepared to lose their investment.
Stone Ridge was founded in 2012, and currently serves clients in both the United States and China, offering portfolio management and advisory services. As of last August, Stone Ridge had $15 billion in assets under management.