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The SEC approves a fund of BTC futures to offer shares to institutional investors

The SEC approves a fund of BTC futures to offer shares to institutional investors


The Bitcoin NYDIG strategy fund, focused on the future of Bitcoin (BTC), has obtained approval from the United States Securities and Exchange Commission (SEC), granting the right to offer its shares to institutional investors.

According to a request before the SEC that came into effect on December 2, the New York Digital Investment Group LLC (NYDIG) is now authorized to offer its shares to institutional investors, including registered investment advisors, their clients and other eligible investors. For those who intend to invest in the shares, the fund does not establish a minimum investment requirement.

BTC futures settled in cash

The fund describes itself as “a non-diversified closed-ended investment company that continually offers its shares”, with the objective of achieving capital appreciation by investing in BTC futures contracts. The proposed maximum bid price per share is USD 10, while its initial capital is USD 25 million.

In detailing its investment strategy, the company said the fund will only invest in cash-settled BTC futures traded on stock exchanges registered with the US Commodities Futures Trading Commission.

More licenses of New York regulators

In mid-November, the New York State Department of Financial Services (NYDFS) granted a BitLicense to NYDIG Execution, a subsidiary of NYDIG. Through the license, the company can offer cryptocurrency and commercial execution services in the jurisdiction of the state of New York.

NYDIG can operate as a cryptocurrency of five cryptocurrencies; Bitcoin, Bitcoin Cash (BCH), Ethereum (ETH), XRP and Litecoin (LTC).

In early December, the California-based financial company SoFi acquired a BitLicense from the NYDFS. The firm is now authorized to support a total of six digital assets, including BTC, ETH, BCH, Ethereum Classic (ETC), LTC and Stellar (XLM).

At that time, NYDFS Superintendent Linda Lacewell highlighted the authority’s commitment to foster innovation in the New York crypto ecosystem and declared: “The approval of the SoFi virtual money and money transmitter licensing department offers consumers more options in a constantly evolving global financial services market. “

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