Sarah Tran
Independent Analyst
- A mutual fund company has launched the first Bitcoin Strategy mutual fund.
- This move comes at a time when the US SEC has delayed multiple decisions on Bitcoin ETFs.
- ProFund aims to allow individual investors to gain exposure to Bitcoin through a traditional investment channel.
The first publicly available mutual fund correlated to the value of Bitcoin price has been launched by a Maryland-based firm, ProFunds.
ProFund finds a way around Bitcoin ETFs
As the demand for crypto-related investment products is rising, over a dozen Bitcoin exchange-traded funds (ETFs) have been filed with the United States Securities & Exchange Commission over the past few months.
Although the securities regulator has not approved any Bitcoin ETFs, firms continue to introduce financial products that offer exposure to the leading cryptocurrency.
Mutual fund management firm ProFund, with roughly $60 billion in assets under management, has revealed the first mutual fund in the United States with a Bitcoin strategy.
The new fund would allow investors to have a less hands-on approach while investing in cryptocurrencies without worrying about holding their Bitcoin on crypto exchanges or using private wallets.
Michael Sapir, the CEO of ProFund, believes that cryptocurrency has become a significant asset class and that the new fund would offer investors exposure to Bitcoin using a more traditional investment method.
Bitcoin Strategy ProFund invests principally in BTC futures contracts and does not directly invest in the bellwether cryptocurrency. The new fund has become the first publicly available mutual fund or ETF in the United States.
Bitcoin price may retest support before heading higher
Bitcoin price has seen an incredible recovery since July 21, surging by over 38%, setting its swing high at $40,835.
Although Bitcoin price has shown great bullish momentum, BTC may see a retest of support levels before making higher highs. The Momentum Reversal Indicator (MRI) has flashed an MRI Top signal, suggesting that the bellwether cryptocurrency may have recorded its local top.
The 100-day Simple Moving Average (SMA) also acts as stiff resistance for Bitcoin price, adding credence to the BTC retracement thesis.
BTC/USDT daily chart
Bitcoin price may find support at the 23.6% Fibonacci extension level at $35,459 as the first line of defense, then the 50-day SMA at $34,604 should BTC lose the aforementioned level of support.
Further selling pressure may push Bitcoin price to the demand barrier, extending from $31,005 to $33,598.
However, should the buyers take control, Bitcoin price could effect the target of the governing technical pattern and reach the measured aim at $42,961, coinciding with the 50% Fibonacci extension level.
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