Santa Monica based Wave Financial has launched the Wave BTC Income & Growth Digital Fund, the first crypto derivatives-based yield fund on the market. Acting as a market maker for Bitcoin call options, the fund intends to generate yield by selling call options on BTC held in the Fund. Wave aims to distribute a dividend of 1.5% of NAV per month, which, if achieved, would result in an 18% target annual yield.
“The mission of Wave is to provide investors with diversified exposure to crypto assets,” said David Siemer, CEO of Wave. “This is an alternative way to hold BTC exposure.”
All Bitcoin held in the fund will be held in custody by Fidelity Digital Assets, Fidelity’s Enterprise-grade custody and execution services for institutional investors.
“For high net worth investors, appetite for innovative yield product with upside potential is strong. This product monetizes higher volatility of BTC to deliver yield, independent of the interest rate environment, while keeping some upside exposure,” said Benjamin Tsai, President of Wave.
The Fund will sell Fund/Tokens only outside the United States to non-US persons in compliance with Regulation S under the Securities Act of 1933 or, within the United States, only to “accredited investors” within the meaning of Rule 501(a) of Regulation D under the Securities Act, pursuant to an exemption from registration provided by Rule 506(c) of Regulation D.
This article does not constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States or in any other jurisdictions. It does not constitute investment advice in any form.