ProFunds, a Maryland-based company, on Wednesday launched the first publicly available mutual fund linked to the value of the largest digital currency.
According to Al Arabiya, the Profund Bitcoin Strategic Fund invests in Bitcoin futures and aims to achieve the results of tracking the price of the digital currency.
This comes as more than a dozen investment companies have applied to launch exchange-traded funds that invest in bitcoin futures, but so far US regulators have not made any decisions.
In June, the Securities and Exchange Commission requested a decision on approving a Bitcoin index fund for the second time in 2021.
The debut coincides with Bitcoin's longest winning streak of the year, as the coin surged 7.5% yesterday and climbed back above $40,900.
The cryptocurrency has seen huge volatility over the past year, and the SEC has warned investors that they should be aware of the risks of investing in futures mutual funds. Bitcoin futures.
Purchasing Bitcoin and other cryptocurrencies directly has also become easier, as companies such as Robinhood Markets and CashApp have created ways to put money into coins without going through the tedious process of opening a digital wallet. Or store vital passwords.
Profund's total expense ratio is 1.15%, slightly higher than the typical 1% or less for ETFs.
