Stone Ridge Asset Management wants to launch a bitcoin futures fund. According to a filing with the U.S. Securities and Exchange Commission (SEC), Stone Ridge is looking to register the NYDIG Bitcoin Strategy Fund, a bitcoin futures contract offering that would be entering into an increasingly crowded space.
If approved, Stone Ridge’s futures product would be significantly different from Bakkt’s own. Primarily, it would be investing in cash-settled bitcoin futures that are traded on exchanges regulated by the U.S. Commodity Futures Trading Commission (CFTC). The fund won’t invest in bitcoin or any other cryptocurrency directly, per the filing.
Stone Ridge will offer 100,000 futures shares at $10 each with no minimum purchases, but the initial capital to be raised would be capped at $25 million.
“‘Cash-settled’ means that when the relevant future expires, if the value of the underlying asset exceeds the futures price, the seller pays to the purchaser cash in the amount of that excess, and if the futures price exceeds the value of the underlying asset, the purchaser pays to the seller cash in the amount of that excess,” according to the filing.
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Author: Jimmy Aki