$60 Billion Fund Manager Allows Access to Bitcoin Through A Mutual Fund Investment
Maryland-based ProFunds, a mutual fund management company with $60 billion in assets under management (AUM) is introducing a new way to invest in Bitcoin without actually buying the crypto asset.
A premier provider of mutual funds with more than 100 funds, ProFunds is launching what it says is the first publicly available US mutual fund called the Bitcoin Strategy ProFund (BTCFX) which will correspond to the price performance of the leading cryptocurrency.
The mutual fund invests in Bitcoin futures contracts and aims of results that track the price of Bitcoin, currently above $40k, before fees. Through this product, the fund wants to eliminate the need to hold BTC and worry about its custody. ProFunds CEO Michael Sapir said,
“Cryptocurrency has become a significant asset class, and our new Bitcoin Strategy ProFund provides investors access to a bitcoin strategy through a mutual fund investment.”
“Compared to directly buying bitcoin, which may involve opening a new account with an unregulated party, this ProFund offers investors the opportunity to gain exposure to bitcoin through a form and investment method that tens of millions of investors are familiar with.”