The United States-based investment management firm ProFunds announced the launch of Bitcoin Strategy ProFund (BTCFX), one of the first publicly available mutual funds or ETFs that performs in parallel with Bitcoin (BTC). ProFunds provides an alternative to the traditional methods of holding cryptocurrencies via wallets or crypto exchanges with this service.
Sharing details on how ProFunds plans to enable investment in Bitcoin performance through mutual funds, ProFunds CEO Michael L. Sapir said:
“Compared to directly buying bitcoin, which may involve opening a new account with an unregulated party, this ProFund offers investors the opportunity to gain exposure to Bitcoin through a form and investment method that tens of millions of investors are familiar with.â€
While this venture promises access to Bitcoin investments in traditional forms, BTCFX “principally invests in Bitcoin futures contracts,†avoiding any direct investments to Bitcoin. ProFunds also warned investors on the risk of investing in crypto derivatives, citing significant price volatility and lack of liquidity.
Related: US government delves deeper into crypto accountability with $10M bounty
The crackdown against crypto businesses has seen a steep incline in the US. Cointelegraph reported the Biden administration’s decision to improve its tracing capabilities against crypto payments earlier this month.
The ruling government announced to offer $10 million in bounty to identify bad actors responsible for cyberattacks on critical infrastructure and ransomware. Crypto exchange Binance has also received its fair share of regulatory scrutiny by the IRS and Justice Department towards illegal trading activities.
