ProFunds, the asset-management company, launched “the first mutual fund in the United States that reflects bitcoin’s performance before expenses.”
The Bitcoin Strategy ProFund strategy contemplates purchasing CME-listed futures on the first cryptocurrency. Direct purchases of the digital gold are not contemplated. The benchmark used is the CF Bitcoin-Dollar US Settlement Price Index.
The instrument is available under the ticker BTCFX.
The offering lets investors diversify portfolios with bitcoin exposure without the need to hold coins on an exchange or in a wallet.
“Bitcoin Strategy ProFund provides access to the first cryptocurrency through a wrapper familiar to tens of millions of investors,” the press release said.
The minimum entry threshold is $1000, Total Expense Ratio — 1.15% (as of November 30, 2022 — 1.47%).
Founded in 1997, ProFunds manages about $60 billion in assets, offering clients a range of mutual funds based on equities, bonds, commodity contracts, currencies and other assets.
The news of the Bitcoin Strategy ProFund launch left Bloomberg senior ETF analyst Eric Balchunas at a loss to explain why the firm could bring its product to market, while ETF filings for bitcoin-futures using the same mechanism have not.
Bitcoin futures mutual fund launching today from ProFunds. Still trying to figure out the catch and/or why this ok but bitcoin futures ETF isn’t. https://t.co/zm5xFoJqmj
— Eric Balchunas (@EricBalchunas) July 28, 2021
In July, Coinbase predicted approval in the U.S. for a bitcoin ETF within this year or the next.
Earlier the SEC postponed review of proposals to launch a similar instrument from SkyBridge Capital, VanEck,Kryptoin Investment Advisor, Valkyrie Digital Assets and WisdomTree.
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