VanEck, a financial services corporation, recently submitted a draught prospectus for a Bitcoin-related mutual fund with the Securities and Exchange Commission of the United States.
VanEck noted the potential hazards involved in a filing with the Securities and Exchange Commission.
The SEC has yet to make a judgement on the fund manager’s Bitcoin ETF filing, which has been delayed twice.
VanEck, a wealth management firm, has filed a prospectus for a Bitcoin Strategy Fund with the Securities and Exchange Commission (SEC).
The fund will buy Bitcoin exchange-traded instruments and futures, according to a new prospectus filed with the securities regulator.
The fund manager will invest in Bitcoin futures contracts using the CME CF Bitcoin Reference Rate (BRR), as well as pooled investment vehicles that invest in the leading cryptocurrency directly and indirectly.
The new crypto fund, dubbed the “Bitcoin Strategy Fund” by its investment manager, will see its share price vary in response to changes in the market value of its portfolio holdings.
Furthermore, VanEck warned that it will not directly purchase Bitcoin due to the dangers associated with cryptocurrency marketplaces. The fund manager also stated that the fund will not invest directly in other digital assets. According to the filing:
“Bitcoin’s value, and thus the fund’s Bitcoin-related investments, might plummet quickly, possibly to nothing. You should expect to lose your entire money if you play this game.”
The global investment management filed the registration on June 21, and the fund will contain large cash and fixed-income holdings in addition to Bitcoin-related investments.
The fund’s risks, according to VanEck, include those associated with pooled investment vehicles, target exposure and rebalancing, borrowing and leverage, tracking errors, credit issues, and interest rate discrepancies, as well as those associated with pooled investment vehicles, target exposure and rebalancing, borrowing and leverage, tracking errors, credit issues, and interest rate discrepancies.
The fund management has yet to hear back from the Securities and Exchange Commission (SEC) on its exchange-traded fund (ETF) registration. For the second time this month, the securities regulator postponed a decision on the VanEck Bitcoin Trust.
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