New York Digital Bitcoin Investment Group (NYDIG) Receives SEC Approval
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Answer New York Digital Bitcoin Investment Group (NYDIG) Receives SEC Approval
The US Securities and Exchange Commission (SEC) has given the New York Digital Investment Group (NYDIG) the go-ahead.
It is now possible for NYDIG to offer equity to institutional investors.
According to the report The new approval will allow New York Digital Investment Group (NYDIG) to offer equity to institutional investors for a new fund focused on bitcoin futures.
Based on the post As announced by the SEC, the NYDIG Bitcoin Strategy Fund is a portfolio fund within the Stone Ridge Trust VI.
The SEC-approved fund invests in cash-settled Bitcoin futures traded on platforms registered with the Commodity Futures Trading Commission (CFTC).
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At the same time, the fund does not intend to invest in bitcoin or alternative cryptocurrencies.
Instead, the fund seeks to buy several bitcoin futures contracts.
The goal is to have the total value of the Bitcoin futures contract held at close to 100% of the fund’s net assets.
The group considers it a reasonable target, however it acknowledges that there is no guarantee that the fund will achieve “Target Exposure”.
The NYDIG Group plans to raise $25 million.
Is it the winds of change?
In general, the SEC has a negative view of crypto-related fund products.
It has previously rejected many exchange-traded funds (ETFs).
However, this approval shows a potential change in how the SEC deals with crypto funds.
It appears that Dalia Blass, director of the investment management division at the SEC, referred to the fund in a letter she gave earlier this week.
Although it did not identify the NYDIG fund by name, it cited it as a prime example of the industry’s involvement with the SEC on new types of products.
It is worth noting that “Plus” indicated that the fund addresses issues such as valuation, custody and liquidity, as well as arbitrage efficiency and combating potential manipulation.
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Thus, it does not have crypto-protection issues, and values contracts using the settlement price on the CFTC-registered futures exchange.
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