ProFunds launching first-ever U.S. Bitcoin mutual fund
By Bob Garcia
Americans who want to add Bitcoin to their portfolios without handling crypto directly have a new investment option. ProFunds announced today that it is launching the Bitcoin Strategy ProFund. It’s the first-ever ETF or mutual fund in the U.S.A. that tracks the performance of bitcoin, before expense and fees.
By purchasing the Bitcoin Strategy ProFund, which trades under the ticker symbol BTCFX, investors can have exposure to the world’s most valuable crypto without having to contend with wallets or exchanges. Eligible investors just need to make a minimum investment of $1,000.
Speaking about the new fund, ProFunds CEO Michael L. Sapir remarked, “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.” He added, “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.”
Although the Bitcoin Strategy ProFund will hold no bitcoin, it will invest in Chicago Mercantile Exchange futures. Proceeds from expiring contracts being rolled into new contracts for the subsequent month.
While the Bitcoin Strategy ProFund is the first U.S. Bitcoin mutual fund, it isn’t the first regulated investment option to give American traders exposure to the top crypto. Both the Osprey Bitcoin Trust and Grayscale Bitcoin Trust are available in the American market, although buyers must deal with steep $25,000 and $50,000 investment minimums, respectively.
More information on the Bitcoin Strategy ProFund can be found at ProFunds.com.