Mainstream adoption is becoming clearer, NYDIG Bitcoin futures fund approved to sell shares to institutional investors

According to Cointelegraph reported on December 7, the Bitcoin Strategy Fund of New York Digital Investment Group Co., Ltd. (NYDIG), which focuses on futures, has obtained the approval of the US Securities and Exchange Commission (SEC) and has the right to sell shares to institutional investors.

Screen Shot 2019-12-07 at 12.44.38 PM (Image source: pxhere )

According to a US Securities and Exchange Commission document that went into effect on December 2, New York Digital Investment Group LLC (NYDIG) is now authorized to provide institutional investors, including registered investment advisers, clients and other eligible investors Sale of its shares. The fund does not set minimum investment requirements.

Fund invests in cash-settled Bitcoin futures

The base describes itself as "a non-diversified, closed-managed investment company that will continue to provide stocks," with the goal of achieving capital appreciation by investing in bitcoin futures contracts. The fund's proposed maximum issue price is $ 10 per share, with an initial capital of $ 25 million.

The company detailed its investment strategy, stating that the fund will only invest in cash-settled Bitcoin futures on a compliant commodity exchange (registered with the US Commodity Futures Trading Commission).

New York regulators are positive on cryptocurrency innovation

In mid-November, the New York State Financial Services Authority (NYDFS) issued a Bitcoin license to NYDIG Execution, a subsidiary of New York Digital Investment Group LLC. The company is allowed to provide cryptocurrency management and transaction execution services within the jurisdiction of New York State. NYDIG is allowed to provide custody services for five cryptocurrencies: including Bitcoin, Bitcoin Cash, Ethereum, XRP and Litecoin.

Earlier in December last year, California-based financial company SoFi acquired the New York State Financial Services Authority's BitLicense. The company is currently authorized to support six digital assets, including Bitcoin, Ethereum, BCH, Ethereum Classic, Litecoin, and Stellar.

During the same period, Linda Lacewell, director of the New York Financial Services Authority, said that the regulator is working to promote innovation in the cryptocurrency ecosystem in New York, saying:

Regulators' approval of SoFi virtual currencies and currency transfer licenses provides consumers with more choices in the growing global financial services market.