Stone Ridge Asset Management, whose holding company is behind the New York Digital Investment Group, has filed a notice with the United States Securities and Exchange Commission that it will liquidate its Bitcoin Strategy Fund.
In a filing with the SEC on Monday, the asset manager said Stone Ridge Trust’s board of directors on Friday approved a plan to liquidate and wind up its Stone Ridge Bitcoin Strategy Fund, first filed with the SEC in July 2021. According to the plan, the management company of assets 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.
“Liquidation of the Fund is expected to occur on or about October 21, 2022,” the filing reads. “Effective at the close of business on October 3, 2022, shares of the Fund will generally no longer be available for purchase.”
According to its July 2021 prospectus, the Bitcoin (BTC) strategic fund aiming to provide exposure to cryptocurrency via futures exchanges, as the SEC has not approved BTC-related cash investment vehicles. The asset manager said at the time that the fund’s objective was “capital appreciation”.
Data from Yahoo Finance show the fund held approximately $2.8 million in net assets at press time. A semi-annual report from Stone Ridge from April 2022 said over half – 50.5% – of the funds were allocated to foreign government agency bonds and the fund had over $10.9 million in total net assets.
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In October 2020, Stone Ridge purchased 10,000 BTC through NYDIG as part of a post-pandemic investment strategy, making it one of the largest BTC holders among private companies. At press time, Bitcoin price was at $22,230, hitting a three-week high on Monday.