The first Bitcoin fund available to all U.S. investors is powered by CF Benchmarks' regulated CF Bitcoin US Settlement Price
ProFunds, the diversified mutual funds group with $60bn in assets under management that is parent company to leading ETF provider ProShares, has launched the first U.S. Bitcoin mutual fund. Bitcoin Strategy ProFund (exchange ticker: BTCFX). BTCFX will use one of CF Benchmarks’ regulated Bitcoin indices as its Performance Index.
BTCFX instantly becomes the first and only widely available U.S. cryptocurrency fund – distinct from numerous crypto funds that are only available to accredited investors (for example, Grayscale Bitcoin Trust). This fact alone makes the news a true watershed moment for Bitcoin and crypto.
As ProFunds co-founder and 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…a form and investment method that tens of millions of investors are familiar with.”
The news is all the more remarkable given that ProFunds has opted to utilise CF Benchmarks’ regulated CF Bitcoin US Settlement Price as its Performance Benchmark. Note that as an actively managed fund, BTCFX is not obligated to track any performance benchmark and most crypto hedge funds eschew this level of transparency on their relative performance. Therefore, ProFunds’ decision to license CF Bitcoin US Settlement Price as its Performance Benchmark is a significant endorsement of our benchmark methodology.
Key details about Bitcoin Strategy ProFund (BTCFX)
- BTCFX is designed to provide investment results, before fees and expenses, that generally correspond to the performance of Bitcoin
- Performance history will be available for the fund after it has been in operation for a full calendar year. When a full calendar year of performance information is available, performance information will be shown on an annual basis. The fund’s performance will be determined by comparison with its Performance Benchmark the CF Bitcoin US Settlement Price (Bloomberg Ticker: CFXBTUSN)
- The fund seeks to provide capital appreciation by investing all or substantially all of its assets through actively managed exposure to exclusively front-month bitcoin futures contracts traded on the CME. (Note that CME Group Bitcoin Futures also utilise CF Benchmarks’ Benchmark Methodology by settling to the CME CF Bitcoin Reference Rate)
- Upon the expiry of each front-month CME Bitcoin Future contract, the fund plans to roll the proceeds into the next available contract of the same tenor
- The fund does not invest directly in Bitcoin
- BTCFX eliminates the need for investors and financial professionals to separately manage their bitcoin exposure through unregulated exchanges or wallets and offers investors a convenient way to incorporate a rapidly growing digital asset into their portfolios
- The minimum initial investment amounts, which may be waived at the discretion of the fund, are: $1,000 for accounts that list a financial professional; $1,000 for self-directed accounts