Monday, July 22, 2024

Investing in cryptocurrency is being made easier by ProFunds’ new Bitcoin mutual fund

Now, you can invest in Bitcoin without buying any Bitcoin. A firm based in Maryland, ProFunds, launched the first mutual fund that is publicly available and is correlated to the largest cryptocurrency’s value. They invest in futures contracts of Bitcoin and aim for outcomes that track the digital currency’s price. This latest product offers exposure to Bitcoin. The firms are clamoring to develop ways through which clients are able to get a part of the digital asset.

There are over 12 investment firms that are launching their exchange-traded funds for investing in Bitcoin. However, the regulators in the United States have not issued a decision yet. The Securities and Exchange Commission were kicking the decision on whether they should approve a Bitcoin ETF again this year.

The debut of the ProFunds coincides with the biggest winning streak for Bitcoin this year. Over the past year, the cryptocurrency’s price has swung wildly. SEC warned the investors about the risk of making an investment in mutual funds that are holding Bitcoin futures. Companies like Cash App and Robinhood Markets have provided a way to invest into bitcoins without having to go through the process of storing vital passwords or even getting a digital wallet. However, there are still some institutions and people who want to purchase products that have regulatory oversight. An everyday investor usually has a better understanding of mutual funds than the cryptocurrency market’s intricacies.

With ProFunds, investors will have an opportunity to make an investment Bitcoin through an investment method that they are familiar with.


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