The new fund is called NYDIG Bitcoin Strategy Fund and describes itself as “a non-diversified, closed-end management investment company that continuously offers its shares”, with an objective to achieve capital appreciation by investing in BTC futures contracts, according to an Oct. 2 filing.
Investment management company Stone Ridge is trying to register a new Bitcoin futures offering with the United States Securities and Exchange Commission (SEC).
Cash-settled BTC futures only
Detailing its investment strategy, the company noted that the fund will only invest in cash-settled BTC futures traded on commodity exchanges registered with the U.S. Commodity Futures Trading Commission, avoiding direct investments in Bitcoin and other digital currencies. The file explained:
“‘Cash-settled’ means that when the relevant future expires, if the value of the underlying asset exceeds the futures price, the seller pays to the purchaser cash in the amount of that excess, and if the futures price exceeds the value of the underlying asset, the purchaser pays to the seller cash in the amount of that excess.”
The proposed maximum offering price per the fund’s share is $10, while its initial capital is $25 million. The fund does not provide assurance that its investments in BTC futures will appreciate in value or on average, as well as that changes in the value of the fund’s BTC futures will track the changes in Bitcoin’s price, the filing notes.
Industry players exploring BTC futures
In late September, Bakkt’s much-anticipated, physically settled Bitcoin futures trading went live for trading on the Intercontinental Exchange (ICE). The platform was the first of its kind to receive approval from United States regulators and is a product of ICE, the operator of the New York Stock Exchange.
That same month, major cryptocurrency exchange Binance launched two futures testnet platforms – inviting users to participate in a 10,000 Binance Coin (BNB) trading competition.
Meanwhile, the Chicago Mercantile Exchange Group is adding options to its Bitcoin futures contracts in the first quarter of 2020, pending regulatory review. Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products, said:
“Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their bitcoin price risk.”
Is PlusToken Scam About to Dump ETH? $105M Moves to Unknown Wallet
Ether (ETH) price faced fresh selling pressure on Dec. 19 as a giant transaction associated with the PlusToken ponzi scheme worried traders.
Data from Twitter-based monitoring resource Whale Alert, a single movement of 789,525 ETH ($105.1 million) between a known PlusToken wallet and an unknown recipient occurred early Thursday.
Giant transaction turns traders bearish on ETH
PlusToken, which hit a high of near $350 before crashing, has earned the infamous title of being one of the world’s biggest ponzi schemes. While still operational, its Chinese operators received an estimated $3 billion in Bitcoin and ETH from unwitting investors purchasing PlusToken coins.
Despite several arrests, subsequent activity has shown one or more individuals still have access to the scheme’s wallets.
Noting the ETH move, trader and analyst Alex Krueger warned the consequences for the Ether price could be severe.
“Heads up”, he told Twitter followers.
As Cointelegraph previously noted, suspicions had already surfaced about PlusToken’s impact on Bitcoin. In a report last month, research firm Chainalysis suggested scammers may be using over-the-counter (OTC) off-ramps to sell BTC en masse, driving down the price.
Specifically, they eyed exchange Huobi’s OTC offering as a potential venue for the illicit transactions.
“Unfortunately, because it’s not possible to distinguish between trades made by OTC brokers in possession of PlusToken funds and all other trades made on Huobi, we can’t say for sure that PlusToken cashouts caused Bitcoin’s price to drop”, the report stated.
“However, we can say that those cashouts cause increased volatility in Bitcoin’s price, and that they correlate significantly with Bitcoin price drops.”
Cointelegraph has approached Huobi for comment. A representative said the exchange was examining the situation but had not responded as of press time.
Wertheimer: Ethereum has “reached the absurd”
While both BTC/USD and ETH/USD have fallen significantly in recent weeks, Ether faces added difficulties as slow progress and controversial decisions by Ethereum developers take their toll on sentiment.
This week, critics came out against a decision to implement a second hard fork on Ethereum in under a month, which they said would disillusion nodes, which could easily be jettisoned from the network.
“When your ‘decentralized’ network moves to a non-emergency schedule of one hard fork every 3 weeks, you’ve reached the absurd”, pro-Bitcoin commentator Udi Wertheimer summarized on Monday.
“You jumped the shark. There’s really no excuse to this and people should be talking about it.”