There is another way those not interested in owning Bitcoin can still profit from it.
Profunds Launches Bitcoin Investment Product
Top Exchange Trust Fund (ETF) and mutual investment firm, Profunds, has announced that it is launching Bitcoin strategy Profund (BTCFX). The BTCFX is a new Bitcoin investment product strictly for Americans.
According to the foremost ETF firm, its BTCFX is the first US-based ETF that offers investment outcomes based on the performance of the king coin itself. However, the Profunds team has clarified that the BTCFX won’t be investing directly in Bitcoin. Rather, its investment will focus on Bitcoin derivatives such as futures contracts.
As of last year, Profunds asset under management (AUM) stands at $54 billion; its AUM is estimated to be more than $61 billion in value. The firm has grown in leaps and bounds after its launch 24 years ago and has become one of the acknowledged leaders in the ETF space.
What BTCFX represents
Micheal L. Sapir, Profunds CEO, emphasized that BTCFX combines proven investment tools and financial assets with bright prospects.
He also said, “virtual assets are now an important asset category, and our new investment product allows interested parties to become Bitcoin investors. Our BTCFX allows investors access an investment familiar with hundreds of millions of other investors, which is an advantage over attempting to go through various processes to own Bitcoin directly.”
However, not every asset management firm is interested in investing in the crypto space. As previously reported, the president of MAN group, Luke Ellis, described virtual assets as the 17th-century tulip bulb mania, which later became an interesting phenomenon in the trading world.
Skyrocketing Demand For Crypto-Related Products
Regardless of their class, investors have continued to be interested in investing in the virtual asset space. More influential investors are particularly interested in investing in Bitcoin. Hence, they keep seeking legal ways to gain exposure to the king coin.
It is no wonder that top traditional financial institutions now offer crypto-related related services to avoid losing their high-end customers. As late as two years ago, leading financial institutions in America like Bank of America, JP Morgan, and Goldman Sachs announced several times that they would have nothing to do with cryptocurrency because of its highly volatile nature.
But this year, all three of them have started offering crypto-related services, with more announcing that they would soon join them. Also, global authorities are responding to the growing popularity of this asset class by promulgating state-specific crypto policies.
Consequently, like politicians, influential figures have suggested that financial regulators should include investor protection policies in their crypto policies.
While Bitcoin temporarily retracted from a bull run after amazon denied reports of accepting Bitcoin payments, it has renewed its bullish run without the help from the eCom titan.
It now trades above $40,500, and almost all the top 10 cryptocurrencies are also toeing the path of the king coin. While the popular opinion was the Amazon rumors, former Wall Street hedge fund trader and Galaxy Digital founder, Mike Novogratz, opined that institutional purchases and not Amazon is responsible for Bitcoin’s renewed bullish run.