Wall Street Asset Manager Stone Ridge to Invest in Bitcoin

Jafrin  |  Mar 1, 2021

Asset management firm Stone Ridge has filed paperwork with the U.S. Securities and Exchange Commission (SEC) for its open-end mutual fund to purchase Bitcoin. The filing will turn effective on April 26th, 2021. However, it doesn’t guarantee that Stone Ridge will necessarily purchase the cryptocurrency.

Opening the Doors for Mutual Funds to Invest in Bitcoin

Asset manager Stone Ridge with over $13 million in AUM on behalf of its diversified alternatives fund, is looking to receive exposure for its diversified alternatives fund to Bitcoin, throughput options on BTC futures contracts. Put options allow investors to sell a certain amount at a predetermined price in the future, although not obliged to.

The filing detailed:

“The fund seeks to generate returns by gaining exposure to the price of Bitcoin by selling put options on Bitcoin futures contracts. This strategy may also invest in pooled investment vehicles, such as registered or private funds, that themselves invest in Bitcoin.”

SkyBridge Capital’s Anthony Scaramucci also commented on the development, classifying it as a big deal that would open the door for every mutual fund to add Bitcoin.

Stone Ridge Intends to Diversify Investment Portfolio

Since 2012, Stone Ridge has provided services to accredited investors as a registered investment advisor (RIA) and had over $13 billion in assets under management as of late 2020.

The filing read:

“The fund seeks to generate total returns from diverse investment strategies that we believe have the potential for attractive returns and are diversifying from stocks and bonds. These strategies include reinsurance, market risk transfer, style premium investing, alternative lending, single-family real estate, healthcare royalties, and Bitcoin.”

The founder of Stone Ridge, Ross Stevens, has also founded the New York Digital Investment Group (NYDIG), a crypto-focused financial services firm. Earlier this month, NYDIG filed for a Bitcoin exchange-traded fund (ETF) with the U.S. SEC. The firm already has over $6 billion in Bitcoin and expects to have over $25 billion in cryptocurrency by the end of the year.

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