ProFunds launches the first mutual fund based on Bitcoin (BTC) futures

Thu 29 Jul 2021 ▪ 19h47 ▪ 3 min read — by Rudy Bauer

The asset management company ProFunds has launched “the first US mutual fund that mirrors Bitcoin performance before expenses are paid.

Brand new tool for investors

ProFund’s Bitcoin Strategy invests in the CME-traded Bitcoin futures contracts, not in the first cryptocurrency directly. The instrument, available under the ticker BTCFX, is using the CF Bitcoin-Dollar US Settlement Price Index as a benchmark.

The new mutual fund allows investors to diversify portfolios with Bitcoin without having to hold coins on an exchange or in a wallet. 

“Bitcoin Strategy ProFund gives access to the first cryptocurrency through a shell familiar to tens of millions of investors,” the press release states.

The entry threshold is $1,000 (~£716) and the Total Expense Ratio is 1.15% (1.47% from 30th November 2022).

Established in 1997, ProFunds manages $60 billion (~£43 billion) in assets, offering clients a variety of mutual funds based on stocks, bonds, commodity contracts, currencies and other assets.

Why not ETF?

The news of ProFund’s Bitcoin Strategy launch had Bloomberg senior exchange-traded fund analyst Eric Balchunas stumped. He was unable to answer why the company managed to launch its product while the applicants of Bitcoin futures ETFs are still waiting for the SEC’s approval.

Earlier this month, Coinbase predicted US approval of a Bitcoin ETF this year or next.

As you may recall, the SEC postponed consideration of applications for a similar instrument from SkyBridge Capital, VanEck, Kryptoin Investment Advisor, Valkyrie Digital Assets and WisdomTree.

The first publicly available mutual fund correlated to the value of Bitcoin has been launched by the asset manager ProFunds. The release has come as a surprise to many, amid the SEC hesitating with multiple decision on BTC ETFs. Still, this is great news for all seeking a convenient way to incorporate BTC in their portfolio, as the new investment tool will allow investors to gain exposure to the first cryptocurrency without having to hold it via exchanges or wallets.

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Rudy Bauer avatar
Rudy Bauer

Photographe, Vidéaste, webdesigner et enfin rédacteur pour CoinTribune: l'image, le digital et la blockchain sont mon dada.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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