Stone Ridge Asset Management filed a new prospectus with SEC to add Bitcoin to its open-end mutual fund

The alternative investment manager behind New York Digital Investment Group, Stone Ridge Asset Management, has requested to add Bitcoin to its open-end mutual fund.

Stone Ridge Asset Management registers new Bitcoin fund with SEC

The prospectus for Stone Ridge Bitcoin Strategy Fund appeared on the SEC website on Friday, though the actual filing is dated July 26, 2021. The Fund is part of an investment portfolio of Stone Ridge Trust, an open-end investment company registered in Delaware.

The filing was made under SEC Form N-1A, which is required for establishing open-end management companies, including mutual funds. The Fund is very similar to the NYDIG Bitcoin Strategy Fund II filed in May of this year in terms of structure.


Source: SEC

Reportedly, the main investment objective of the Stone Ridge Bitcoin Strategy Fund is capital appreciation through exposure to Bitcoin through the futures market rather than buying spot market.

“The Fund pursues its investment strategy primarily by investing in bitcoin futures contracts and in pooled investment vehicles that invest directly or indirectly in Bitcoin. The Fund does not invest in bitcoin or other digital assets directly,” the prospectus stated.

Furthermore, Stone Ridge Bitcoin Strategy Fund expects to have significant cash holdings, U.S. government securities, mortgage-backed securities, and other assets.

The prospectus stated about the Fund’s target exposure:

“The Fund seeks to invest in Bitcoin-related investments so that the total value of the bitcoin to which the Fund has economic exposure is between 100% and 125% of the net assets of the Fund.”

Back in October 2020, Stone Ridge purchased 10,000 BTC through NYDIG as part of a post-pandemic investment strategy. The purchase timeline coincided with the beginning of a seven-month uptrend for Bitcoin that would see its value peak near $65,000 in April.

Earlier this year, Stone Ridge submitted a prospectus to its Diversified Alternatives Fund, which sought exposure to Bitcoin and other alternative assets. For financial advisors, investing in Bitcoin no longer carries the same stigma as it did a few years ago.

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