NYDIG’s parent company, Stone Ridge Asset Management, has not hidden the fact that it has been busy trying to gain innovative new investment vehicles for the world’s biggest crypto, Bitcoin (BTC). Just this past Friday, the open-end mutual fund by Stone Ridge had unveiled a new investment strategy that would be focused on Bitcoin.
As such, a new prospectus has been filed by Stone Ridge with the U.S SEC in order to have Bitcoin be added to this new mutual fund.
New strategy fund
The aforementioned prospectus had shown up on SEC’s official website a couple of days ago on Friday, although the filing itself was dated July 26th. Simply put, this fund is an integral aspect of Stone Ridge Trust’s investment portfolio. Stone Ridge Trust is a company that has been registered in Delaware and focuses on open-end investments.
As per the information provided by the prospectus, the main goal of the SRBSF (Stone Ridge Bitcoin Strategy Fund) appears to be ‘capital appreciation. In this way, the fund wants to have increased exposure towards the flagship crypto through futures markets rather than traditional spot purchases. Upon further elaboration, it was revealed that this fund is actively pursuing the investment strategy deemed most appropriate, which involves investing in BTC futures contracts as well as pooled investment vehicles. These would then, in turn, make direct and indirect investments in Bitcoin. It should be mentioned that the fund itself will not, however, invest in any digital assets (Bitcoin included) directly.
The SEC filing and details of the prospectus
The abovementioned filing had been made through the SEC Form N-1A. This form is mandatory for anyone who wants to set up open-end supervision and management companies, which also involves mutual funds. Regarding the structure and framework, the fund is actually quite similar to that of NYDIG’s BTC Strategy Fund II that had been filed this past May.
Moreover, the prospectus explains that this fund anticipates that it shall be holding significant amounts of cash, mortgage-backed securities, and even United States government securities. As far as the target exposure is concerned, the prospectus states that the reason why the fund will be getting involved in BTC-oriented investments is that the goal is to have the overall value of the BTC that the fund has been economically exposed to be between the areas of 100% to 125% of total net assets.
In related news, Stone Ridge had filed for a prospectus earlier on in 2021 for the company’s Diversified Alternatives Fund. The goal of this fund was to provide similar exposure to BTC as well as various alternative assets.