thecoinrepublic.com
ProFund, a Maryland-based company, has launched the first bitcoin strategy mutual fund. The company launched the product at a time when SEC has more than a dozen applications lying for the approval of BTC ETF. SEC’s decision on Bitcoin ETFs has been delayed and the final timeline has not been known yet.
Maryland-based firm ProFund has launched the first bitcoin strategy mutual fund. The company has launched the product at a time when the US Securities and Exchange Commission (SEC) is delaying the process of Bitcoin ETFs decision.
Multiple companies have filed their applications for the BTC ETF to SEC, for which the decision is yet to come. On the other hand, the demand for crypto-related investment is rising. Despite the SEC has not approved any Bitcoin ETFs, firms continue to introduce financial products that offer exposure to the leading cryptocurrency.
ProFund is a mutual fund management company and has around $60 billion in assets under management. The company is the first to have introduced the first mutual fund in the United States with a Bitcoin strategy.
Helping the investors
The new fund will help investors to have a less hands-on approach while investing in cryptocurrencies without worrying about their bitcoin on crypto exchanges or using private wallets.
The CEO of ProFund, Michael Sapir said that the cryptocurrency has become an important asset class and the new fund would offer investors exposure to bitcoin using a more traditional investment method. The company has been investing principally in BTC Futures contracts and does not directly invest in the bellwether cryptocurrency.
The new fund offered by the company has become the first publicly available mutual fund or ETF in the United States.
Bitcoin Rally
Bitcoin has witnessed an impressive recovery since July 21. The token has surged by more than 38%, setting its swing high at $40,835. Although Bitcoin is showing a bullish rally, BTC may experience a retest of support levels before making higher highs. The momentum Reversal Indicator (MRI) has flashed an MRI Top Signal.
The 100-day simple moving average (SMA) also acts as a tough resistance for BTC price, adding credence to the BTC retracement thesis.
The prices of bitcoin have found support at the 23.6% Fibonacci extension level at $35,459 as the first line of defence, later the 50-day SMA 34,604 should BTC lose the aforementioned level of support. The selling pressure may further push the prices of Bitcoin, extending from $31,005 to $33,598.
If the buyers take control, then Bitcoin price could affect the target of the governing technical pattern and reach the measured aim at $42,961, coinciding with the 50% Fibonacci extension level.