ProFunds, a mutual fund investment company, has registered with the Securities and Exchange Commission (SEC) to offer Bitcoin Strategy ProFund.
Bitcoin Strategy ProFund (BTCFX) will invest in Bitcoin futures contracts. According to the press release issued on the website:
“This innovative new ProFund eliminates the need for investors and financial professionals to separately manage their bitcoin exposure through exchanges or wallets and offers investors a convenient way to incorporate a rapidly growing digital asset into their portfolios.”
The company does not require the approval of the SEC because, unlike ETFs (Exchange Traded Funds), they do not trade in the open market. It submitted the registration document ‘Form N-1A’ and the services are now already available to its users.
That being said, while Bitcoin futures-focused mutual funds will moderately increase retail access to the crypto market, they won’t be as effective as an ETF.
In the US, the SEC is reviewing many ETFs applications and is yet to approve one.
ProFunds CEO Michael L. Sapir said in the announcement:
“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. 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.”
ProFunds was founded in 1997 and is one of the most popular investment trusts in the United States. The company manages $60 billion in assets worldwide.
ProFunds clarified in its statement that the mutual fund will invest in the Bitcoin futures contract, and not directly in Bitcoin.