VanEck Files to Offer Bitcoin Futures Mutual Fund

Investment firm VanEck has filed with the US SEC to offer a bitcoin futures mutual fund in the US. A new filing with the U.S. Securities and Exchange Commission (SEC) shows that investment firm VanEck Associates Corporation is looking to offer a bitcoin futures mutual fund in the United States. “The [Bitcoin Strategy] fund aims to achieve its investment objective by investing in bitcoin futures contracts under normal circumstances… as well as pooled investment instruments and exchange-traded products that provide exposure to bitcoin,” the filing said. “The fund does not directly invest in bitcoin or other digital assets.” According to the filing, the fund will make indirect bitcoin investments through a subsidiary, which can be up to 25% of the value of the fund's total assets. A wholly owned limited liability company based in the Cayman Islands, the subsidiary operates under the laws of the islands and can invest directly in bitcoin. Additionally, the filing reveals that the fund's target for exposure to bitcoin investments will be approximately 100% of the fund's net assets. However, when the fund chooses to use leveraged risk in bitcoin, it may rise above this level. If Bitcoin investments do not consume all of the fund's net assets, it may resort to alternative investment vehicles to provide liquidity, serve as margin, or to secure the fund's or subsidiary's investments. Such alternative avenues include U.S. government bonds, money market funds, cash and cash equivalents, mortgage-backed securities issued or guaranteed by U.S. government agencies, and even government debt obligations of non-U.S. countries, according to the filing. The Bitcoin Strategy Fund's portfolio will be led by Gregory Krenzer, who will be primarily responsible for the fund's day-to-day portfolio management. Krenzer has been at VanEck since 1994 and has more than 25 years of experience in the financial markets. This post is not VanEck's first post about bitcoin.

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