New York-based investment firm Wilshire Phoenix has partnered with crypto storage solution Coinbase Custody to launch a new institutional fund by the end of 2018.
The fund, which will be organised as a statutory trust and which capped at USD500 million, will provide exposure to bitcoin, but, unlike other products that simply hold bitcoin (or oven multiple cryptocurrencies, often referred to as an index), it will seek to mitigate some of the risks typically involved from the sudden and substantial price movements of bitcoin.
In addition, investors together with financial institutions may find it difficult to purchase and hold bitcoin due to pricing models around Generally Accepted Accounting Principles (US GAAP). We trust that our system, which is patent-pending, may also solve this important issue. The fund will not use derivatives or any form of leverage to achieve its objective. This will limit counterparty exposure and the often unnecessary additional fees that are normally associated with these types of financial products or methods.
While the fund is not intended to replicate a direct investment in bitcoin. It will seek to provide investors and financial institutions with the ability to gain exposure to bitcoin while mitigating some of the risks involved from sudden price movements of bitcoin.
“Coinbase Custody provides Wilshire Phoenix a best in class platform on which to securely store digital assets. They are steadfast in their commitment to implementing and executing solutions for institutional clients as opposed to merely talking about their future plans to do so. We are excited to have Coinbase in our corner and we look forward to our continued partnership in the months and years to come,” says Bill Herrmann, Founder & CEO of Wilshire Phoenix.
“We’re proud to partner with Wilshire Phoenix to provide institutional-grade, compliant digital-asset custody for its new fund,” says Sam McIngvale, General Manager of Coinbase Custody Trust. “As a regulated Qualified Custodian and fiduciary, Coinbase Custody will not only offer Wilshire Phoenix clients’ secure storage for digital assets, but also the ability to perform GAAP-compliant audits whenever the need arises.”