The company bids farewell to its Bitcoin futures fund less than three years after its launch. The reason? Little demand among investors.
- Stone Ridge Asset Management shuts down BTC futures fund.
- The fund had been launched in December 2019.
- The product did not attract enough interest from investors.
Stone Ridge Asset Managementa US provider of asset management services for institutional clients, is shelving its trust fund Bitcoin (BTC) after not finding enough demand.
The company intends to dissolve and liquidate its BTC futures fund, Stone Ridge Bitcoin Strategy Fundreported CoinDesk Y The Block. According to public files quoted by the media Stone Ridgee presented a liquidation and dissolution plan for its investment strategy fund Bitcoin with the US Securities and Exchange Commission (SEC) on Monday.
According to the presentation, the liquidation of the fund is expected to take place next month, after the close of operations on October 3. After that date, the shares will not be available for purchase.
“The Adviser will reduce the Fund to cash in preparation for the Settlement Date. The proceeds of the liquidation of the Fund are expected to be distributed to shareholders in cashsays the document cited by The Block. “The proceeds of the liquidation are expected to be distributed immediately after the Liquidation Date in the total redemption of each shareholder’s Fund shares.“.
Goodbye Bitcoin background
More than USD $15 billion of assets under management, Stone launched the investment vehicle with exposure to futures contracts of Bitcoin in December 2019.
According to a prospect filed with US regulators that year, the fund would buy cash-settled BTC futures traded on US registered exchanges, and not BTC futures Bitcoin physically settled. The product did not plan to invest directly in Bitcoin or other cryptocurrencies, although exposure to the asset was high.
However, it seems that the offer failed to attract enough investor interest. as highlighted CoinDeskthe fund may have faced headwinds due to the recent cryptocurrency bear market and increasing competition from investment products based on the BTC futures market.
Since last year, the SEC has approved several futures-backed exchange-traded funds (ETFs) Bitcoinsome of which charge rates lower than the product of Stone Ridge. According to data from Yahoo Finance, Stone Ridge Bitcoin Strategy Fund has been falling since November of last year, as cryptocurrency prices have slowed. The fund has only about $2.3 million in assets under management, according to data from Google Finance.
Stone Ridge Asset Management It is part of Stone Ridge Holdings Groupa multi-million dollar asset management company that also owns NYDIGa subsidiary focused on investments in Bitcoin valued at more than $7 billion.