Missouri-based financial services firm M3Sixty filed to launch the IDX Risk-Managed Bitcoin Fund last week.
The fund will invest primarily in Bitcoin futures contracts and pooled investment vehicles, such as investment companies invested in Bitcoin directly or indirectly. It may also invest in Canadian ETFs that have direct or indirect exposure to bitcoin.
The fund will not invest directly in Bitcoin, other digital assets or non-affiliated OTC trusts such as Grayscale Bitcoin Trust (GBTC). The filing also states that the fund does not seek exposure to the spot price of Bitcoin.
The filing says the fund does not plan to hold futures contracts “with longer than 90 days to maturity” and expects to have significant cash holdings, U.S. government securities, and investment-grade fixed-income securities.
The cash and investment holdings are intended to provide liquidity and serve as collateral for the futures contracts.
The fund will use a proprietary quantitative model to statistically gauge the strength of price trends in Bitcoin using publicly available daily price information. It will engage in frequent trading and will result in a portfolio turnover of over 100%.
Approximately 25% of the funds assets will be invested in a wholly owned Cayman Islands subsidiary.
The fund will be managed by IDX advisors. Ben McMillan is the portfolio manager and CIO of M3Sixty.
No ticker was listed.
M3Sixty listed a 1.99% management fee, a 0.25% distribution for investor class shares, and a 1.99% management fee for institutional class shares. M3Sixty is the second digital asset proposal under review to list a management fee.
ARK became the first issuer to announce a fee for its proposed Bitcoin ETF. Experts expect that ETFs that hold Bitcoin will carry higher fees than other ETFs because of custody costs.
For more news, information, and strategy, visit the Crypto Channel.