Stone Ridge Asset Management – the parent investment management entity of NY Digital Investment Group – reportedly submitted an application for a new open-end mutual fund with the US SEC. 

Specifically, the freshly submitted filing for the Stone Ridge Bitcoin Strategy Fund – with the prospectus surfaced on the SEC web page on July 23rd – is reportedly included in numerous initiatives from Stone Ridge, regarding Bitcoin-centric investment vehicles. 

Per the prospectus, The Fund is reportedly included as an investment portfolio for Stone Ridge Trust, an open-end investment firm situated in Delaware. The fund’s goal will mainly revolve around “capital appreciation” – searching for Bitcoin exposure through futures markets, as contradictory to spot purchases. 

“The Fund pursues its investment strategy primarily by investing in bitcoin futures contracts and in pooled investment vehicles that invest directly or indirectly in bitcoin (collectively, “bitcoin-related investments”). The Fund does not invest in bitcoin or other digital assets directly.” The entity offered additional explanation.

The application was reportedly filled out under SEC Form N-1A, which is mandatory for setting up open-end management firms, including mutual funds. When it comes to structure, the Fund bears resemblance to the NYDIG Bitcoin Strategy Fund II filed in May of 2021. 

It is additionally disclosed in the prospectus that the Fund “expects to have significant holdings of cash, U.S. government securities, mortgage-backed securities” and other assets.

“The Fund seeks to invest in bitcoin-related investments so that the total value of the bitcoin to which the Fund has economic exposure is between 100% and 125% of the net assets of the Fund.” The document further reads, in terms of target exposure for the Fund.