12.09.19
Fund With Bitcoin Futures Strategy Preps for Launch
by: Melanie Waddell
A new digital asset class to be offered through registered investment advisors is poised for takeoff, according to Dalia Blass, director of the SEC's Division of Investment Management. "We are at the point that a registered closed-end interval fund with a Bitcoin futures strategy is preparing to launch,” Blass said in a speech at ICI's 2019 Securities Law Developments Conference last week. "This fund expects to generally value its Bitcoin futures holdings at daily settlement prices reflected on a CFTC-registered futures exchange, consistent with the principles of the Investment Company Act of 1940 and U.S. GAAP.” The fund, Blass added, has “taken steps to address issues related to potential manipulation in the digital asset markets,” including prominent risk disclosures, offering the product only through registered investment advisors, and limiting the size and future growth of the fund.
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