SEC’s Door of Opportunity: Allows Stone Ridge Bitcoin Investment Through Mutual Fund

Securities & Exchange Commission of the US (SEC) received a request from Stone Ridge firm for allowing it to invest in Bitcoin through its open-end mutual fund called Stone Ridge Diversified Alternatives Fund (SRDA Fund). If the submission is approved by SEC, then it is going to be groundbreaking and an open door opportunity for others as well, expresses an asset manager.

It has been reported that one of America’s leading asset management firms called Stone Ridge has decided to invest in Bitcoin. As per the report, it has been confirmed that Form N-1A has been submitted by Stone Ridge Trust before the SEC three days ago. Furthermore, it has been suggested that the approval would become effective on the date of 26th April 2021.

As per Form N-1A, Stone Ridge has sought approval for using SRDA Fund to inject money into Bitcoin in the form of investment. It was revealed by investing companies that their aim is to produce profitable returns through adopting and employing diversified investment policies. The firm claimed that such diversified investment policies have immense prospective for fulfilling the objectives and aims of Stone Ridge.

The company elaborated in its filing with regard to its decision on Bitcoin investment that they’d like to explore more about Bitcoin. It stated in the filing that they have decided to employ put options for the purposes of future contracts relating to Bitcoin. The company expects to invest further in other business opportunities including private and public listed funds.

After learning Stone Ridge’s intent of investing in Bitcoin through SRDA Fund, a founder of another notable asset management firm also commented. Skybridge Capital’s Anthony Scaramucci remarked that notable developments have been taking place with regard to Bitcoin. He stated that Stone Ridge’s objective has opened doors of opportunities for other asset management firms/individuals as well.

He also suggested that officially Stone Ridge is the first amongst asset managers who had come up with this idea. Before that though there are several open-end mutual funds but none thought of using fund money for Bitcoin investment, appreciated Scaramucci.

Skybridge too is an asset management fund that has also applied for Bitcoin investment approval with SEC. This company too had invested heavily into Bitcoin during the peak times of pandemic. As of today, its total holding of Bitcoin surpasses one billion dollars.

After filing for Bitcoin investment, Skyrbidge revealed that they are receiving loads of investors wishing to join Skybridge. Furthermore, Scaramucci, as always, is being bullish about Bitcoin. He stated a few days ago that Bitcoin’s value would go above US$ 100 k before the year 2021 will come to an end.

While Stone Ridge’s intention would mutualize on 26th April yet the firm had also filed for initiating Bitcoin ETF trading before SEC.