The recently formed Exante Ltd. out of Malta is the world’s first Bitcoin hedge fund. The fund was designed to offer institutions and high-net worth individuals a regulated investment vehicle for Bitcoin. Unfortunately, US citizens and institutions “may not subscribe.”
In a piece for Forbes Matonis details the new fund.
“Although any person or entity can acquire and store bitcoins on their own, institutional investors are typically restricted in the types of assets available within their investment charter. Similar to a mutual fund or hedge fund for alternative assets, Exante’s Bitcoin Fund permits institutions and high-net worth individuals to access the vibrant bitcoin market with a licensed product”
“The fund shares are distributed exclusively through the Exante Hedge Fund Marketplace platform. Authorized and regulated by the Malta Financial Services Authority, Exante offers the Bitcoin Fund with an initial minimum subscription of $100,000 and a 0.5% upfront subscription fee.”
“However, U.S. persons and U.S. institutions will not be able to access the fund directly, because according to the Fund Disclaimer, ‘U.S. Persons may not subscribe either directly or indirectly for shares.’”
“Founded in March 2011, the 60-person Exante team operates from offices in Malta, Singapore, and Russia. The Bitcoin sub-fund was incorporated as a Bermuda exempted company and is registered as a segregated account company receiving funds at Citibank London.”
“Current assets under management in the Bitcoin Fund are $3.2 million (2.5€ million) and there is no performance-based fee. However, the fund charges an annual management fee o.5% of Net Share Value payable monthly in order to provide the sophisticated security and wallet management that one would expect with such large amounts at stake.”
“As the fund does not employ leverage or derivatives for risk management, Exante intends to provide a two-way secondary market for the trading of fund shares.”
Read Matonis’s piece in its entirety here.