Stone Ridge Asset Management, which has its holding company as New York Digital Investment Group, has filed notice with the United States Securities and Exchange Commission for the purpose of liquidating its Bitcoin Strategy Fund, as reported by Cointelegraph.
According to Cointelegraph, through a SEC filing, the asset manager stated that the Stone Ridge Trust board of trustees provided approval to liquidate and dissolve its Stone Ridge Bitcoin Strategy Fund, which was first filed with SEC in July, 2021. Insights from the plan mentioned that the asset management firm will continue with its operations of the fund, after a point it’ll reduce the funds to cash in preparation for liquidation and distribution to shareholders.
“The liquidation of the Fund is expected to take place on or about October 21, 2022. Effective after the close of business on October 3, 2022, the Fund’s shares will generally no longer be available for purchase,” the filing said.
On the basis of information by Cointelegraph, going by its July, 2021, prospectus, the Bitcoin (BTC) strategy fund intended to offer exposure to cryptocurrencies through futures markets, as SEC has not provided approval to spot vehicles connected to BTC. The asset manager was of the opinion that the aim of the fund was increase in capital. Data from Yahoo Finance showed that the fund reportedly had close to $2.8 million in net assets during the time of publication, while a Stone Ridge semi-annual report from April, 2022, added that more than, approximately 50.5% of the funds were directed towards foreign government agency bonds and the fund carried more than $10.9 million in net total assets.
Moreover, Cointelegraph noted that in October, 2020, Stone Ridge bought 10,000 BTC with the use of NYDIG as part of a post-pandemic investment strategy, which made it one of the largest BTC holders among private companies. At the time of the publication’s writing, Bitcoin reportedly had a valuation of $22,230 and at a three-week high.
(With insights from Cointelegraph)