Asset manager Stone Ridge is creating a new Bitcoin-focused fund as part of its investment strategy.
In a prospectus filed with the US Securities and Exchange Commission (SEC) on July 23rd, the New York-based firm with $10 billion in assets under management (AUM) is registering for the Stone Ridge Bitcoin Strategy Fund.
The fund focuses on Bitcoin futures contracts and pooled investment vehicles that invest directly or indirectly in the flagship cryptocurrency.
The firm clarifies that the fund does not directly invest in Bitcoin (BTC) and other crypto assets. The fund is also expected to have significant holdings of cash and traditional assets, such as government securities, mortgage-backed securities and money market funds. According to Stone Ridge, the investments in traditional vehicles will serve multiple purposes for the fund.
“The Cash and Fixed Income Investments are intended to provide liquidity, to serve as collateral for the Fund’s futures contracts and to support the Fund’s use of leverage.
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 (the “Target Exposure”). The Fund’s Target Exposure will generally not be changed based on the daily price changes of bitcoin or the Fund’s bitcoin-related investments…
To the extent that the Fund’s economic exposure to Bitcoin exceeds 100% of the net assets of the Fund, the Fund will generally have leveraged exposure to the value of bitcoin. ”
The SEC filing comes months after Stone Ridge Holdings Group revealed that it acquired over $100 million worth of Bitcoin as part of its treasury reserve strategy. The purchase was made and custodied by the firm’s subsidiary, New York Digital Investment Group (NYDIG).
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