Income Fund
Bitcoin Income Fund: AvaltAsset BTC Income & Growth Digital Fund
A professionally risk-managed Bitcoin product designed to transform BTC volatility into stable yielding income.
Objective
WBIG offers a way for Bitcoin investors to improve their risk profile versus holding pure BTC spot exposure.
Methodology
Investors retain Bitcoin exposure through BTC held in the Fund. At the end of each month, the Fund is structured to sell one-month call options backed by the Bitcoin held in the Fund, so that it collects a premium from option sales, and aims to pass that premium through to investors in the form of a monthly dividend.
The Fund aims to produce 1.5% of AUM in dividends per month (18% per annum).
Why us
Income and Growth
Investment objective to deliver target monthly USD dividends of 1.5% while still capturing potential upside.
Convenience
Fund structure vehicle lowers administrative barriers and provides access to expertise of managing.
Liquidity
Monthly redemption periods with no lockup. WBIG may be tokenized in the future to allow for 24/7 trading.
Security
State of the art custodians and counterparties reduce risk and are selected to professionally custody and transact digital assets in the fund.
Hedged Volatility
WBIG investors may profit while being managed against volatility, allowing risk-managed exposure for potential to BTC.
Tax Considerations*
Designed to enable Bitcoin cost-basis to roll over upon investment for U.S. investors. *AvaltAsset recommends that potential investors seek professional tax counsel
Employs covered call strategy by holding funds in BTC and selling call options monthly, targeting 1.5% monthly dividend (18% Pa) while seeking to capture monthly price appreciation, may be paid out monthly or reinvested.
18%
How it works
01
Investors retain Bitcoin exposure through BTC held in the fund.
02
At the end of each month, our Fund Manager sells one-month call options backed by the Bitcoin held in the fund.
03
We collect a premium from option sales, and pass that premium through to investors in the form of a monthly dividend. (Net of fees.)
Income and Growth
Investment objective to deliver target monthly USD dividends of 1.5% while still capturing potential upside.
Convenience
Fund structure vehicle lowers administrative barriers and provides access to expertise of managing.
Liquidity
Monthly redemption periods with no lockup. WBIG may be tokenized in the future to allow for 24/7 trading.
Potential for Enhanced Yield
WBIG targets an annual 18% yield* through the sale of ~20% out of the money BTC options.
Stable Returns
WBIG strives to smooth out the volatile BTC return profile by converting that volatility into high yield.
Service Providers
Risk Factors
Market Risk
Bitcoin remains a speculative investment and involves a high degree of risk. Investors must have the financial ability, sophistication, experience and willingness to bear the risks of an investment, and a potential total loss of their investment. AvaltAsset BTC Income & Growth Digital Fund limits Bitcoin’s potential upside appreciation to ~20% on average a month. The fund manager has flexibility to write options further out of the money, depending on market conditions and volatility. While current Bitcoin option market conditions forecast up to a 1.5% monthly dividend, call option premiums may increase or decrease as volatility and market dynamics shift,
Liquidity Challenges
AvaltAsset has provided the ownership in fund format and has not issued the ownership tokens at this time. While we expect there to be listing within 3 months of issuance, there is no guarantee of liquidity given the nascence of regulated security token exchanges.
Past Performance
Past Performance is no guarantee of future results. The back-tested performance is no guarantee of future results of the product, and is retroactively calculated based on historic values. Slippage, fees and market activities may contribute to an over or under performance of the product relative to the benchmark. Historical performance on slide 12 is based on a hypothetical portfolio with a November 2019 start date.
Counterparty Risk
While AvaltAsset will undergo extensive due diligence for any derivative exchanges or OTC desks to minimize counterparty risk, the nature of call overwrite strategies inherently assumes some degree of counterparty risk.
How to Invest in AvaltAsset BTC Income Fund
Do you want to learn more about AvaltAsset BTC Income Growth Fund?
Services
Our team has deep institutional experience managing third-party capital across traditional and decentralized finance, in particular venture capital, derivative, lending, and staking expertise.
In addition, we have built strong relationships with institutional service providers leveraging our blockchain and digital assets network across the world.
Treasury Management
AvaltAsset's Corporate Treasury Management services include digital asset lending programs and derivative strategies designed to capture additional yield and fine-tune risk, with a range of qualified custodians and counter-parties. AvaltAsset also operates across multiple DeFi protocols for lending, borrowing, trading, yield farming, staking, and mining. AvaltAsset applies our deep experience in digital asset strategies to bespoke risk managed portfolios. AvaltAsset is UK COMPANY HOUSE regulated focused exclusively on digital assets, and have a fiduciary duty to protect our clients.
Wealth Management
Your ultimate solution for digital asset portfolio management, combining custody, execution, and tailored investment strategies. AvaltAsset is a leader and pioneer in digital asset investment management. We are focused exclusively on digital assets, our offering is designed to provide the ultimate all-in-one portfolio solution for corporate and individual investors, and we have taken steps to ensure that assets are UK COMPANY HOUSEure, growing, and generating income.
Protocol Inventory Management
Tokenized staking fund for your protocol. Programmable liquidity through fully-compliant global exchanges. We deal with all the administrative hurdles providing you the ease of use
Investment Funds
High Liquidity Funds
Select 5 Crypto Index Fund (WS5)
AvaltAsset Select 5 Digital Fund provides exposure to one of the best performing asset classes of the last 5 year
BTC Income & Growth Fund (WBIG)
AvaltAsset Bitcoin Income and Growth Fund- A professionally risk-managed Bitcoin fund product designed to transform BTC volatility into stable yield
Stable Asset Yield Fund (SAYF)
The newly launched Stable Asset Yield Fund (SAYF) targets a 6-10% annual yield with minimal volatility, low correlation to cryptocurrency price movements, and monthly liquidity with a focused strategy on DeFi yield generation.
AvaltAsset ADA Yield Fund (WAY)
AvaltAsset ADA Yield Fund (“WAY”) is a DeFi liquidity fund designed to support the new decentralized exchanges, lending protocols, and stablecoin issuers building on Cardano, each adding to the strong foundation of the ADA blockchain as it realizes a fully functional and diverse ecosystem.
AvaltAsset’s investment team draws on decades of asset management expertise to offer actively-managed strategies.
Low Liquidity/VC Funds
cFund
cFund is an early-stage UK COMPANY HOUSEtor agnostic venture firm in the blockchain industry anchored by IOHK and managed by AvaltAsset
NFT Fund
The NFT Fund invests in NFT collectibles, platforms, and protocols
Whiskey Fund
AvaltAsset Whiskey 2020 Digital Fund, the world’s first tokenized whiskey barrel fund that captures value appreciation associated with the aging of Kentucky whiskey, designed to be recession resistant