The US Commodity Futures Trading Commission (CFTC) has given the go-ahead for New York Digital Investment Group (NYDIG) to launch its Bitcoin Strategy Fund, according to Economic Times website.
The fund would target Bitcoin futures, so the total value of the Bitcoin futures held by the fund would hit approx. 100% of its net assets.
Mr. Matt Hougan, the managing director of Bitwise Asset Management, said his company has a competitive edge at achieving success in Bitcoin ETF history despite SEC rejections previously.
Several crypto companies based in the US have been attempting at issuing publicly-traded Bitcoin funds (ETFs). Thus, Bitcoin became among the most efficient institutional markets in the world.
Although the US security watchdog had declined the latest proposal from Bitwise, it reconsidered its decision about the Bitcoin exchange-traded fund (ETF) filing submitted by Bitwise Asset Management and NYSE Arca.
The fund will mainly invest in cash-settled Bitcoin futures traded on Commodity Futures Trading Commission-approved exchanges, like the CME Group. Thus, the fund won’t have any exposure to the coins on a blockchain when it launches.