Stone Ridge Asset Management, whose holding company is behind the New York Digital Investment Group, has notified the United States Securities and Exchange Commission that it will liquidate its Bitcoin Strategy Fund.
In a Monday filing with the SEC, the asset manager said that Stone Ridge Trust’s board of directors on Friday approved a plan to liquidate and dissolve its Stone Ridge Bitcoin Strategy Fund, first filed with the SEC in July 2021. Under the plan, the asset management firm will continue to operate the fund until October 3, after which it will “reduce the fund to cash” in preparation for liquidation and distribution to shareholders.
“The liquidation of the fund is expected to take place around October 21, 2022,” the presentation says. “As of the close of business on October 3, 2022, the fund’s shares will generally no longer be available for purchase.”
According to their July 2021 filing documentation, the Bitcoin (BTC) fund intended to offer exposure to the cryptocurrency through futures markets, as the SEC has not approved spot investment vehicles tied to BTC. The asset manager said at the time that the fund’s objective was “capital appreciation”.
Data from Yahoo Finance showed that the fund had about $2.8 million in net assets at press time. An April 2022 Stone Ridge semi-annual report said that more than half (50.5%) of the funds were allocated to foreign government agency bonds and that the fund had more than $10.9 million in total net assets.
In October 2020, Stone Ridge bought 10,000 BTC through the NYDIG as part of a post-pandemic investment strategy, becoming one of the largest BTC holders among private companies. At the time of writing, the Bitcoin price was $22,230, hitting a three-week high on Monday.
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