$60 billion fund manager ProFunds launches the first bitcoin strategy mutual fund in the US
The first publicly available Bitcoin mutual fund in the United States has been launched by ProFunds a premier provider of a diverse lineup of mutual funds.
According to the announcement on July 28, ProFunds said this innovative new ProFund eliminates the need for investors and financial professionals to separately manage their bitcoin exposure through exchanges or wallets and offers investors a convenient way to incorporate a rapidly growing digital asset into their portfolios.
“Cryptocurrency has become a significant asset class, and our new Bitcoin Strategy ProFund provides investors access to a bitcoin strategy through a mutual fund investment. Compared to directly buying bitcoin, which may involve opening a new account with an unregulated party, this ProFund offers investors the opportunity to gain exposure to bitcoin through a form and investment method that tens of millions of investors are familiar with,” said ProFunds CEO Michael L. Sapir.
The Bitcoin Strategy ProFund principally invests in bitcoin futures contracts. The Fund does not invest directly in bitcoin. The market for bitcoin futures may be less developed, and potentially less liquid and more volatile, than more established futures markets. Bitcoin futures are subject to margin requirements, collateral requirements and daily limits that may prevent the Fund from achieving its objective.
ProFunds and its affiliates manage approximately $60 billion in assets for investors worldwide.
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