A recent filing from the Securities and Exchange Commission (SEC) is revealing that it is approving a BTC futures fund. Specifically, the Bitcoin futures fund will now be able to offer institutional investors its shares.
SEC approves Bitcoin futures fund
This news was first made public by an SEC filing that came into effect on December 2nd. According to this filing, the New York Digital Investment Group LLC (NYDIG) can now offer its shares to institutional investors.
Moreover, this sizeable market includes registered investment advisers, as well as their own clients and other eligible investors. With that said, however, the firm is not disclosing the minimum investment requirement for its fund.
Nevertheless, this represents an incremental albeit important step for institutional Bitcoin futures trading. The New York Digital Investment Group Bitcoin Strategy Fund, which is its official name, aims to “maximize capital appreciation”.
Additionally, it is a “non-diversified, closed-end management investment company that continuously offers its shares”. Furthermore, the maximum offering price per share for the fund appears to be $10 per share, with the funds initial capital being $25 million.
The Bitcoin futures market is heating
Furthermore, the fund states that it will only seek to invest in cash-settled Bitcoin futures traded on US CFTC registered commodity exchanges. This appears to be a further step towards playing by the US regulatory rules for Bitcoin futures offerings.
This, however, is not the first Bitcoin futures fund to get the green light. Back in mid-November, New York’s State Department of Financial Services gave a BitLicense to NYDIG Execution. As the name suggests, NYDIG Execution is a subsidiary of the New York Digital Investment Group.
In addition to this, the license gave the firm a permit to offer cryptocurrency custodial and trade execution services to various clients in the New York State area. NYDIG also has permission to operate as a cryptocurrency custodian for five different cryptocurrencies.
Specifically, these include Bitcoin, Bitcoin Cash, Ethereum, Ripple and Litecoin. As such, it is not entirely surprising to see NYDIG continue on the beaten track with its Bitcoin futures fund. In fact, this could even pave the way for future cryptocurrency futures funds with different types of cryptocurrencies.
This follows a recent BitLicense acquisition from the NYDFS by the Californian firm SoFi. Unlike NYDIG, SoFi has approval to support a total of six different cryptocurrencies. These include Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin and Stellar.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.