2/25/2021, 5:32 PM (Source: TeleTrader)
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Stone Ridge becomes first ETF to buy Bitcoin

New York-based asset manager Stone Ridge on Thursday added Bitcoin as yet another way of investment in its diversified alternatives portfolio and, therefore, became the first open-ended mutual fund to buy Bitcoin. According to the SEC filing, this becomes effective on April 26.

Fund whose focus lays on real estate, healthcare and alternative lending will now have exposure to Bitcoin through the put options on Bitcoin futures contracts. This means that parties are obligated to transact Bitcoin at a predetermined future date and price. The buyer must purchase or the seller must sell Bitcoin at the set price, regardless of the current market price at the expiration date.

Stone Ridge stressed that the fund may get further exposure to Bitcoin’s price by investing in pooled investment vehicles that have invested in Bitcoin as well.

Baha Breaking News (BBN) / TF