SEC Greenlights Bitcoin Futures-based Investment Fund
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Dec. 10, 2019
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The U.S. Securities and Exchange Commission (SEC) has approved the launch of the NYDIG Bitcoin Strategy Fund based on bitcoin (EXANTE: Bitcoin) futures managed by Stone Ridge.

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The SEC gave its permission based on the fact that the fund plans to invest only fiat in bitcoin futures. According to the regulator, this will interfere with potential market manipulations.

The investment advisor to the new fund is Stone Ridge Funds, a subsidiary of Stone Ridge Holdings Group, focused on long-term institutional investors. The group’s assets are $15 billion worth in customer assets.

The shares of the fund will cost $10 and will not be placed on exchanges, nor can they be traded on a daily basis. Periodically, institutional investors will be able to sell part of their shares back to the fund.

An application for the opening of the NYDIG Bitcoin Strategy Fund was submitted in October. It indicated that to ensure liquidity, the fund’s assets will include "significant cash" and U.S. government bonds.

Earlier iHodl reported that the Founder and Chief Executive of a popular Russian instant messaging service Telegram, Pavel Durov, will testify alongside two other employees in the SEC vs Telegram case.

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