It was the world’s first crypto derivatives-based yield fund on the market when it launched in September 2019.

At the time of the launch of the Wave BTC Income & Growth Digital Fund, Wave Financial President Benjamin Tsai said the innovative product would appeal to high net worth investors. The product aimed to monetize the higher volatility of bitcoin (BTC) to deliver a dividend yield, irrespective of the interest rate environment, with some exposure to the potential upside in the price of BTC. It would use a call options strategy for this purpose.

The numbers are out for the fund’s first full year of trading, and they’re impressive.

The fund scored a 145.8% annual gain for its investors which include institutions, family offices, and high-net-worth individuals. (the armchair trader)

Objective fulfilled

“We are pleased that our bitcoin growth and income fund has achieved what we set it out to do in its first year, achieving a stable return from what is otherwise perceived as a volatile asset,” says Tsai. “The income component is particularly compelling in the current low yield environment.”

Matteo Dante Perruccio, president international at Wave, added: “WBIG is a fund that is specifically designed to provide investors with significant exposure to bitcoin, whilst offsetting volatility from such exposure and with the aim of generating a stable return. WBIG strives to smooth out the volatile bitcoin return profile by converting that volatility into high yield.”

Wave Financial

Wave offers various types of exposure of digital assets. In addition to the Bitcoin Income and Growth Fund, it offers a real asset fund in the shape of the Wave Whiskey 2020 Digital Fund, the world’s first tokenized whiskey barrel fund.

The firm’s Wavemaker Genesis is an actively managed liquid VC fund investing in crypto-assets. The firm is also a Registered Investment Advisor offering wealth management solutions for digital asset portfolios. Lastly, Wave offers protocol inventory management.

CEO David Siemer, a venture capital, private equity, and hedge fund specialist focused on digital assets, and Tsai, former managing director of structured products at Merrill Lynch in Asia, set up Wave Financial Group in 2018. This is the parent company of Wave Financial, the digital assets unit.

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