Have you come across the first Bitcoin strategy mutual fund? If no, then let us give you an insight into what BTCFX is.
Due to the fact that bitcoin and bitcoin futures are a relatively new asset class, there are frequent price fluctuations and market uncertainty. Bitcoin and bitcoin futures are exposed to unique and significant risks, such as price volatility and a lack of liquidity. An investment in the Fund’s value could plummet dramatically and without warning, possibly to zero. You should expect to lose your entire money if you play this game.
Cryptocurrency fund provider ProFunds has created a Bitcoin Strategy ProFund (BTCFX). Before fees and expenses, the new Bitcoin Strategy ProFund is the first publicly available US mutual fund or ETF that is designed to produce investment outcomes that are generally in line with the performance of bitcoin.
Individual investors would no longer have to worry about holding Bitcoin on an exchange or private wallet, according to a news release from ProFund. Cryptocurrency investors may prefer to hold their own investments, while others may prefer a more hands-off method of investing.
Investors of all stripes are increasingly interested in crypto-related items. However, affluent institutional investors that are eager to obtain exposure to Bitcoin and crypto through regulated channels are the ones who are most in need of it. Many banking titans have begun offering crypto services in response to increased client demand.
Hence, compared to directly buying bitcoin, ProFund offers investors the option to obtain exposure to bitcoin through a form and investment mechanism that are familiar to tens of millions of investors.