ProFunds Launches The First Bitcoin Strategy Mutual Fund
Jul 28, 2021
Eliminates the Need to Access Bitcoin through Unregulated Exchanges or Wallets.
BETHESDA, MD – July 28, 2021 – ProFunds, a premier provider of a diverse lineup of mutual funds, announced today the launch of the Bitcoin Strategy ProFund (BTCFX).
The new Bitcoin Strategy ProFund is the first publicly available U.S. mutual fund or ETF designed to provide investment results, before fees and expenses, that generally correspond to the performance of bitcoin.
This innovative new ProFund eliminates the need for investors and financial professionals to separately manage their bitcoin exposure through exchanges or wallets and offers investors a convenient way to incorporate a rapidly growing digital asset into their portfolios.
“Cryptocurrency has become a significant asset class, and our new Bitcoin Strategy ProFund provides investors access to a bitcoin strategy through a mutual fund investment,” says ProFunds CEO Michael L. Sapir. “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.”
The Bitcoin Strategy ProFund principally invests in bitcoin futures contracts. The Fund does not invest directly in bitcoin.
Founded in 1997, ProFunds has more than 20 years of experience managing a diverse lineup of some of the most innovative funds in the financial industry and offers trading flexibility to all shareholders. In addition to classic, broad-market index funds, ProFunds offers leveraged and inverse funds that track a variety of complex assets, including broad-market and sector-based domestic and international equity, fixed income, commodity, currency, CDS and other benchmarks. Together with ProShares, which launched the first U.S. leveraged and inverse exchange traded funds (ETFs) in 2006, ProFunds and its affiliates manage approximately $60 billion in assets for investors worldwide.
Bitcoin and bitcoin futures are a relatively new asset class and the market for Bitcoin is subject to rapid changes and uncertainty. Bitcoin and bitcoin futures are subject to unique and substantial risks, including significant price volatility and lack of liquidity. The value of an investment in the Fund could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment.
The Fund invests in bitcoin futures contracts. The Fund does not invest directly in or hold bitcoin. The price of bitcoin futures should be expected to differ from the current or “spot” price of bitcoin. Consequently, the performance of the Fund should be expected to differ from the performance of the spot price of bitcoin. The market for bitcoin futures may be less developed, and potentially less liquid and more volatile, than more established futures markets. Bitcoin futures are subject to margin requirements, collateral requirements and daily limits that may prevent the Fund from achieving its objective.
Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin is subject to rapid price swings, including as a result of actions and statements by influencers and the media.
If the Fund’s ability to obtain exposure to bitcoin-related investments consistent with its investment objective is disrupted for any reason, including as a result of a lack of liquidity, volatility or a disruption to the bitcoin futures market, or as a result of margin requirements or position limits applicable to the Fund, the Fund may not be able to achieve its investment objective and may experience significant losses. ProFunds may, in its sole discretion and without prior notice, limit or reject purchases or close the Fund to new investment. ProFunds may re-open the Fund in its sole discretion and without prior notice.
"Spot" price refers to the price of physical bitcoin that can be purchased for immediate delivery.