Designed for institutional and accredited investors, the BTC Yield Fund is an actively managed yield fund that generates a total return composed of capital appreciation from direct exposure to Bitcoin (BTC) and income derived from BTC-denominated lending.
The General Partner pursues the Partnership’s Investment Objective by accumulating positions in USDC and subsequently originating or investing in USDC-denominated loans and other debt instruments, proprietarily sourced through some of the premier digital asset banks, prime brokerages, and other regulated, capital deployment avenues (collectively “Lending Facilities”) engaged by the Fund. To maintain USDC price exposure and low volatility, the GP expects the Partnership to remain fully allocated to USDC, with little to no portfolio turnover. Given the strong emphasis on preserving principal, the GP expects USDC loans to be made on a largely collateralized basis and directed only to high credit quality institutions who have undergone thorough due diligence by the GP and our Lending Facilities acting as agent or principal in sourcing opportunities for the Partnership.
The GP intends to allocate between such Lending Facilities and other USDC interesting-bearing instruments, taking a range of factors into consideration including loan supply and demand, prevailing USDC interest rates, borrower credit quality and collateral, and a range of other factors to maximize current income and best generate a positive outcome on a risk-adjusted basis.
Historically, BTC has resisted correlation with traditional equity markets and the broader economy, which could enhance portfolio diversification and reduce portfolio risk while increasing returns per unit of risk.
BTC is a finite asset capped at a total supply of 21 million. As of May 8, 2021, 18.704 million total bitcoin have been mined, which leaves only 2.296 million to be introduced into circulation.
The fund will eventually be tradeable on the Securitize Markets ATS.
Digital Asset Fund
Compelling (low) fee proposition and a traditional security structure affords direct exposure in a familiar and accessible format.
Income is generated from BTC-denominated lending activity, and is paid out to investors in the form of yield.
Like all investments, investors should carefully consider the risks when making an investment decision.2
There is no guarantee that the Partnership will authorize a private securities transaction or be able to list the units on the designated exchange, there are regulatory restrictions and trading limitations on the platform that may limit the liquidity of the fund.
Investors should consider the risks relating to digital assets and conflicts of interest, including that Securitize Capital is an affiliated entity and maybe under common ownership.
Securitze Capital Markets and Securitize Markets are under common ownership. Please refer to the Conflicts of Interest of the offering documents prior to investing. Any questions should be addressed to the funds.