Company Stone Ridge Asset Management, an alternative investment manager behind New York Digital Investment Group, has submitted a new prospectus to the US Securities and Exchange Commission (SEC). It wants to add BTC to its open-end mutual fund.
A prospectus for the Stone Ridge BTC Strategic Fund appeared on the SEC website on Friday. Its alone submission however, it is scheduled for July 26, 2021. The fund is part of the investment portfolio of the Delaware-registered Stone Ridge Trust.
According to the prospectus, it is the fund’s main investment objective Stone Ridge BTC Strategy Fund “Capital appreciation”. The fund seeks exposure to BTC through futures markets, as opposed to spot purchases, as explained below:
“The fund pursues its investment strategy primarily by investing in BTC futures and pooled investment instruments. They invest directly or indirectly in BTC. The fund itself does not invest directly in Bitcoin or other digital assets. “
Will BTC enter the growing trend?
The submission has been made based on SEC Form N-1A, which is needed for the establishment of open management companies, including mutual funds. The structure of the fund is very similar to the NYDIG BTC Strategy Fund II, which was filed in May this year.
The prospectus further explains that the fund “Expects to have significant holdings of cash, US government securities, mortgage-backed securities” and other assets.
“The fund seeks to invest in BTC-related investments so that the total value of BTC to which the fund is economically exposed is between 100% and 125% of the fund’s net assets.”
Stone Ridge purchased 10,000 through NYDIG in October 2020 BTC as part of its investment strategy. The purchase schedule coincided with the start of the seven-month growth trend for BTC.