Stone Ridge Is Set To Liquidate Its Bitcoin Fund And Proceed With Its Dissolution

Stone Ridge Asset Management has made an announcement regarding the decision they have made surrounding the NYDIG.

The New York Digital Investment Group is backed by the holding company of Stone Ridge Asset Management.

Notice Filed to the US SEC Communicating Liquidation

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The officials at Stone Ridge Asset Management have recently filed a notice at the US SEC. According to the filing, the firm is to liquidate the Bitcoin Strategy Fund it had been backing for a long time.

The asset manager submitted the filing surrounding its decision for NYDIG on Monday. In the filing, the Fund’s board of trustees, the holding company backed by the asset manager, have revealed what their plans are for the company.

They have revealed that they plan on liquidating and then proceeding with dissolving the Stone Ridge BTC Strategy Fund. The SEC has revealed that the plan for dissolving the fund had been made back in July 2021.

However, the company now feels that it must proceed with dissolving the fund.

The Fund to Operate Until October 3

The asset manager has revealed in the filing that the fund will continue operating until October 3, 2022. After the particular date, the company will move on to dissolve the fund.

As the firm dissolves and liquidates the fund, it will be reduced to cash. Once the liquidation process is complete, they will proceed with the distribution of funds to the shareholders.

Expected Liquidation of the Fund

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According to the teams at the asset management firm, the Stone Ridge Bitcoin Strategy Fund is expected to go through liquidation on October 21, 2022. However, they will close the business and terminate its operations on October 3, 2022.

On the same data (October 3, 2022), they would suspend the facility for the investors from purchasing shares at the Fund.

July 2021 Prospectus of the Fund

It was back in the month of July 2021 when the Fund announced that it would bring mainstream investors towards the futures markets related to cryptocurrencies.

The company wanted to expose the mainstream institutions and major investors to Bitcoin in the form of spot investment vehicles. However, the US SEC did not approve the proposal made by the Fund to offer spot investment vehicles to the users.

Stone Ridge wanted to bring more and more investment base towards Bitcoin and for this purpose, it purchase 10,000 Bitcoin.

The NYDIG had aided Stone Ridge in carrying out the purchase of 10,000 Bitcoin. It was back in October of 2020 when Stone Ridge acquired the said number of Bitcoin.

At the time of writing, the trading price of Bitcoin is over $22,000, which means that the company will not be at a loss when it sells Bitcoin.