There is a new way to invest in bitcoin without actually buying bitcoin. Maryland-based firm, ProFunds, has launched what it claims is the first publicly accessible mutual fund linked to the value of the largest cryptocurrency. The Bitcoin Strategy ProFund invests in bitcoin futures contracts and monitors the price of digital currency – before commissions.
It is another financial product that offers exposure to bitcoin, as companies rush to create ways for their customers to grab a piece of the digital asset. More than a dozen investment firms have applied to launch ETFs investing in bitcoin or bitcoin futures, but US regulators have not yet made any decisions.
Cryptocurrencies have seen rapid changes over the past year, and the SEC has warned investors to be aware of the risks of investing in mutual funds that include bitcoin futures.
Acquiring bitcoin and other cryptocurrencies has become easier, as companies such as Robinhood Markets and Cash App have found ways to channel money into currencies without having to go through the difficult process of opening a digital wallet or storing passwords.