Copy link
Increase text size
Decrease text size
Link copied

Investment group acquires green light from the SEC for Bitcoin Futures fund

The Securities and Exchange Commission has approved the New York Digital Investment Group (NYDIG) to offer shares of its NYDIG Bitcoin Strategy Fund, which will invest in cash-settled bitcoin futures contracts, to institutional investors.

Image: Unsplash

Sun, 08 Dec 2019, 10:30 am UTC

The New York Digital Investment Group (NYDIG) has acquired the green light from the Securities and Exchange Commission (SEC) to offer the shares of its new bitcoin fund to institutional investors.

The NYDIG Bitcoin Strategy Fund will be investing in cash-settled bitcoin futures contracts with crypto exchanges that are registered to the Commodity Futures Trading Commission (CFTC).

In a filing released by the SEC, the NYDIG said that the fund will only be investing in cash-settled Bitcoin futures and will not be directly investing in Bitcoin or other digital assets. The price of each share is being offered at $10, with its net assets initially cap at $25 million. When the cap is reached, the fund “will close to new investors and only the reinvestment of dividends by existing investors will be permitted.”

The SEC’s approval is a significant step for the crypto industry as the regulatory body has been quite restrictive when it comes to this nascent market. Indeed, the NYDIG and CME are the only two entities that were permitted by the agency to date.

Bakkt creating waves

Meanwhile, the Intercontinental Exchange (ICE)’s Bakkt Bitcoin (USD) Cash Settled Monthly Futures contract is set to launch tomorrow, Dec. 9, in Singapore. This new offering will allow interested investors to mitigate risks if they’re planning to enter the bitcoin industry.

“Our new cash-settled futures contract will offer investors in Asia and around the world a convenient, capital-efficient way to gain or hedge exposure in bitcoin markets,” said Lucas Schmeddes, President & COO of ICE Futures and Clear Singapore. “Building off the success of our deliverable futures contract, the cash-settled futures will leverage ICE’s regulated, globally-accessible market to offer a safe, secure and compliant environment for the trading of bitcoin.”

SEC slowly easing up on the crypto market

This development is the SEC’s maneuver to cultivate the growth of the crypto industry, while simultaneously keeping vigilance to illicit activities that may arise from this emerging market. Money laundering and terrorist financing are just some of the issues that have been identified by authorities that are closely tied with the crypto ecosystem.

Dalia Blass, director of the SEC's Division of Investment Management, has been asking industry players to provide assistance on how to decrease risks for investors. Blass said that she’s been pleased with how the industry has responded and it appears that NYDIG’s new license is a reflection of that positivity.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Moses
  • 2020.04.29 03:26:23
I am a cryptocurrency trader and i make over 200% daily, If you are interested,i can teach you how to trade and also help you achieve your goal in life with crypto i can turn
$4500 into $35000 in less then four weeks,now that bitcoin has low prices...please note that cryptocurrency trading is bitcoin unlike binary and Forex,bitcoin is traded for altcoins also you can reach to me if you are new to bitcoin and to give you more info and guideline on how to invest smartly, this is opportunity life time knocking on your door ???? inbox me for more info....contact me on WhatsApp +1(206)-742-5358 thank you to you all and God bless you ...................................
  • 0
  • ·
  • 0
More
  • Bitcoin (BTC) $11,617.80 (+4.11%)
  • Ethereum (ETH) $399.42 (+3.16%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $297.44 (+3.48%)
  • Bitcoin SV (BSV) $233.81 (+4.39%)
  • Bitcoin (BTC) $11,617.80 (+4.11%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft