A Maryland-based firm called ProFunds announced on Wednesday what it says is the first publicly available mutual fund that deals with the value of the largest cryptocurrency. Bitcoin Strategy ProFund invests in bitcoin futures contracts and aims for results that track the price of the digital currency before fees. The price of bitcoin in India was Rs 31.52 lakh on August 1 at 12:30 pm IST.
It is the newest financial product to give you exposure to bitcoin, as companies struggle to create ways for customers to grab a portion of the obscure digital asset. More than a dozen investment firms have stepped forward to launch exchange-traded funds that invest in bitcoin or bitcoin futures. But so far the US regulators have not issued any decision. In June, the Securities and Exchange Commission stayed its decision to approve Bitcoin ETFs for the second time in 2021.
It started with the biggest strength of Bitcoin. The token rose up to 7.5 per cent on Wednesday and climbed above $40,900 (approximately Rs 30 lakh). The price of cryptocurrencies has risen wildly over the past year and the SEC has warned investors that they should be aware of the risks of investing in mutual funds that hold bitcoin futures.
Buying bitcoin and other crypto coins is now easier, as companies like Robinhood Markets and Cash App have created ways to put money into coins without having to open a digital wallet or go through the tedious process of storing important passwords. Still some people and institutions want to buy the product with some regulatory oversight. Everyday investors are generally more familiar with mutual funds than with the intricacies of the cryptocurrency market.
The ProFunds product has an overall expense ratio of 1.15 percent, which is slightly higher than the typical 1 percent or less fee in ETFs. ProFunds CEO Michael Sapir said in a press release, “In comparison to buying bitcoin outright, which may involve opening a new account with an unregulated party, ProFunds allows investors to buy bitcoin through a form and investment method.” Provides exposure opportunities that millions of investors are familiar with.”
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