2 November 2024
US based firm Introduces First Ever Bitcoin Strategy Fund
ProFunds, the US-based investment management firm, has announced the launch of the first publicly available mutual fund, Bitcoin Strategy Profund (BTCFX). The investment management firm comes up with an alternative to the traditional methods of holding cryptos via crypto exchanges or wallets with their services.
Explaining in detail, the CEO of ProFunds, Michael L. Sapir, voiced, “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.”
Although this venture promises access to Bitcoin investments in traditional forms, BTCFX “principally invests in Bitcoin futures contracts,” eliminating any direct Bitcoin investments. ProFund has also warned investors on the risk of investing in crypto derivatives, citing significant price volatility and lack of liquidity.
As per the sources, the crackdown against crypto business has observed a steep incline in the United States. However, under the supervision of the Biden administration, crypto payments have started improving their tracing capabilities earlier this month.
Additionally, the Biden government has announced $10 million in bounty to identify bad actors responsible for cyberattacks on critical infrastructure and ransomware. Moreover, Binance, the cryptocurrency exchange, has also received its fair share of regulatory scrutiny by the IRS and Justice Department towards illegal trading activities.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.
Discussion
0 comments