The company filed a new prospectus with Bitcoin options with the SEC. The company reported that the inclusion of Bitcoin would become effective on April 26.
In recent days, Stone Ridge Asset Management included Bitcoin (BTC) as a strategic asset in its diversified investment fund. The institutional capital management firm will offer indirect exposure through put options on futures of the pioneering cryptocurrency.
The US Securities and Exchange Commission (SEC) recently received the Stone Ridge prospectus. The company explained that Bitcoin will be in its seventh strategy to generate new returns among investors.
They would include Bitcoin in the diversified fund on April 26th, according to the prospectus. The fund’s investment strategies include reinsurance, single-family real estate, alternative loans, market risk transfer, healthcare royalties, and premium investments.
“The fund seeks to expose itself to the price of Bitcoin by selling options traded on the exchange and settled in cash on Bitcoin futures contracts,” said the New York company. Since it is an indirect exposure, traders do not directly handle cryptocurrencies, so they cannot transact with them.
Stone Ridge explains in the prospectus how Bitcoin works as a network for the transfer of value, what digital mining is all about and how Bitcoin has gained adoption. They also talk about the risks of volatility and the possibility that the “price of Bitcoin will decline rapidly, even to zero.”
More Corporate Investment in Bitcoin
Investment firm Sky Bridge founder Anthony Scaramucci applauded Stone Ridge’s move, stressing that it is important for Bitcoin. According to the executive, this would be the first variable capital mutual fund to buy Bitcoin.
Scaramucci said on Twitter that “the Stone Ridge presentation opens the door for all mutual funds to add Bitcoin.” He added that “Stone Ridge will be able to start buying Bitcoin from April 26th.”
In addition to serving as a link for larger institutional investments related to Bitcoin, Stone Ridge has already invested directly in Bitcoin. In fact, the firm had already bought an amount of USD 115 million worth of Bitcoin in October of last year.
Ross Stevens, the Co-founder, and CEO of Stone Ridge, recently said that Bitcoin had already reached millions of people globally. However, billions of users could have the pioneering cryptocurrency in this new stage of adoption.
Information service Bitcoin Treasuries indicates that institutional investments in Bitcoin exceed USD 44,000 million, which was unimaginable until a few years ago.
Executives at ARK Investment and Grayscale, among other firms, recently stated that Bitcoin has potential in the billions of US dollars. Catherine Wood and Michael Sonnenshein noted that the adoption of the cryptocurrency that Satoshi Nakamoto created is at a very early stage. For that reason, they consider that its expansion to other levels would be a matter of time.
Stone Ridge Asset Management is just one example of the many companies that have joined the growing list of institutional investors. Despite the negative aspects that they mention, they do not stop recognizing the potential that it has as an asset. Therefore, this cryptocurrency that has proven its ability to recover from the worst crises remains an excellent investment option.
By Willmen Blanco
