Dubbed “NYDIG Bitcoin Strategy Fund,” the fund aims to achieve capital appreciation by investing in bitcoin futures contracts, according to the prospectus filed Wednesday.
Stone Ridge said the fund will invest only in cash-settled bitcoin futures traded on exchanges registered with the U.S. Commodity Futures Trading Commission (CFTC), and not in physically-settled bitcoin futures, such as the one offered by Bakkt. The fund will also not invest in bitcoin or other cryptocurrencies directly.
Besides bitcoin futures, the fund aims to have “significant” holdings of cash and U.S. government securities, and to a lesser extent, in corporate cash and fixed-income investments, per the prospectus.
The fund’s shares will be offered initially at a price of $10 per share, with no minimum purchases, and the fund will initially cap its net assets at $25 million. Stone Ridge warned that bitcoin and bitcoin futures have historically been “highly volatile” and that investors should be prepared to lose their “entire investment” when investing in the fund.
New York-based Stone Ridge, which also serves in China, claims to have $15 billion of assets under management (AUM) as of Aug. 30.