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Portfolio > Alternative Investments > Cryptocurrencies

ProShares Launches a Bitcoin Futures Mutual Fund

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What You Need to Know

  • The Bitcoin Strategy ProFund seeks capital appreciation and invests in Bitcoin futures trading on the CME.
  • It does not invest in Bitcoin directly but can invest in pooled investment vehicles that have exposure to Bitcoin.
  • ProShares says the fund is a convenient way to include Bitcoin within a portfolio.

ProShares, whose Bitcoin Futures ETF applications were among the many previously rejected by the Securities and Exchange Commission, has launched a Bitcoin Futures mutual fund.

The Bitcoin Strategy ProFund (BTCFX) seeks capital appreciation and is designed to “generally correspond to the performance of Bitcoin” and to provide “a convenient way to incorporate this digital asset into their portfolios,” without the need for digital wallets or cryptocurrency exchanges, according to the firm’s press release.

“Cryptocurrency has become a significant asset class, and our new Bitcoin Strategy ProFund provides investors access to a bitcoin strategy through a mutual fund investment,” said ProFunds CEO Michael L. Sapir in a statement.

“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.”

BTCFX invests in Bitcoin futures contracts trading on the CME, not in Bitcoin directly.

According to the fund’s registration statement filed with the SEC, the fund may also invest in in pooled investment vehicles and other instruments that provide exposure to Bitcoin or Bitcoin futures contracts.

The minimum initial investment, which may be waived at the discretion of the fund, is $1,000 across all investor types. The net fee is 1.15%.

ProFunds, founded in 1997, along with its affiliates manage approximately $60 billion in mutual fund and ETF assets, including broad-market index funds and leveraged and inverse funds that track broad market and sector-based U.S. and international equity, fixed income, commodity, currency and other benchmarks.

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