Fidelity Digital Assets Custody Ready for Bitcoin Derivatives Yield Fund
Wave Financial, based in Los Angeles, launched the Wave BTC Income & Growth Digital Fund, racing to become the first crypto derivatives-based yield fund in the market.
Benjamin Tsai, managing partner of Wave Financial, mentioned that Fidelity Digital Assets is now available to provide custody for their fund after several months of due diligence.
“I think what was missing in the crypto market is a lot of very solid traditional types of products, but with crypto assets.”
The Wave fund plans to distribute a dividend of 1.5 percent net asset value of the Bitcoin held in the fund, which results in 18% of the annual yield.
There has been a lack of investors confirming the subscription of the fund although the fund has already been open for subscriptions.
“We have a number of investors that have expressed interest, and we are working to get them the actual private placement memorandum and subscription agreement.”
The Bitcoin income fund currently charges 100 basis points for fixed management.
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