Wave Select 5 Index is designed to represent the overall crypto currency market providing pure beta exposure. Portfolio of the top 5 cryptocurrencies is screened by our team of experts and weighted by market capitalization, with monthly rebalancing and no caps.
The Portfolio Manager also has discretion to overweight or underweight the exposure to certain crypto currencies regardless of the benchmark index. This may result in over or under performance of the product relative to the benchmark index.
Criteria For Including Index Constituents
The Wave Digital Assets Select 5 Crypto Index Fund provides exposure to one of the best performing asset classes of the last 5 years.
Market Capitalization Weighted
Cryptocurrencies are ranked by market capitalization on the last business day of every month. The top 5 cryptocurrencies are then weighted by market capitalization with no cap or floor and then included with their respective weights in the index.
Certain Coins Categorically Excluded
Stable coins, such as Tether, are excluded as they are not designed to increase in value over time. Privacy coins, such as Monero, are excluded due to their regulatory uncertainty.
Security
The committee reserves the right to remove a crypto asset from the index regardless of market cap due to high default risk. This includes: SEC reviews, drastic fall in hash power, little to no Github activity, critical bug discovered in the network. Other events that signal failure such as a 51% attack or well documented security flaw with the asset can lead to removal as well.
Bitcoin (BTC)
64.22%
Etherum (ETH)
27.32%
Binance Coin (BNB)
5.88%
Cardano (ADA)
1.58%
Polygon (MATIC)
1.00%
- Cryptocurrency selection for index will be based on reasonably available data and subject to necessary judgement calls by management given data supply problems that currently exist in the sector.
- Rank as of May 31st 2023
Competitive Advantage
Wave Select 5 Crypto Fund is a crypto asset index fund designed to provide beta (market exposure)
Convenience
Single investment vehicle without the administrative hassle of portfolio rebalancing, multiple exchange accounts or Crypto asset security
Access
Qualified Investors gain access to Top 5 Crypto assets without administrative or custody hassle.
Market Exposure
Wave Select 5 Index typically covers 80%+ of cryptocurrency market cap, designed to provide pure beta exposure
Low Cost
With a 1% management fee, the cost structure is designed to maintain costs at a minimum.
Security
State of the art custodians selected to safely protect Crypto assets in the fund
Fund
Wave Select 5 Crypto Fund (BVI master entity with US and BVI feeder)
Redemption Deadline
5 business days before subscription and redemption dates
Benchmark Index
Wave Select 5 Index
Subscription
Twice a month
Investment Manager
Wave Digital Assets LLC
Redemption
Monthly at the month end NAV
Fees
1% p.a. management fee, no performance fee. See Prospectus for other costs
Min Investment
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Service Providers
FAQs
How can I get more detailed information on the specific offering?
Click “Get Started” where you will be asked to provide qualifying information so that we can perform our initial onboarding including KYC/AML and verification of accredited status. You will then be provided with an offering document.
What is your market coverage?
The index fund covers approximately ~75% of total crypto currency market capitalization, at the end of Feb 2023. This coverage ratio will be subject to market movements of the constituents versus the market.
Which exchanges do you use to trade the crypto assets?
We mainly source large assets from crypto exchanges such as Kraken and Coinbase.
How do you store the crypto assets?
The fund holds the crypto assets in a custody account with Copper.
What types of capital contributions can you accept?
We accept USD.
Where can I see the value of my investment?
The fund administrator will provide a monthly NAV report on the value of the investment.
What are the tax implications of this product?
Wave Digital Assets does not offer tax advice, and recommends that potential investors seek professional tax counsel.
Are there redemptions?
Redemptions are available monthly. Certain conditions apply.
Risk Factors
Index Related
Performance of an index is not illustrative of any particular investment. The Wave Select 5 Index represents a hypothetical, back-tested, and unaudited return-stream that does not represent the returns of an actual account. Index performance does not include the fees and expenses. Actual returns may differ materially from hypothetical, back-tested returns. Back-testing is calculated by retroactively applying an index-weighted methodology to the historical data. Cryptocurrency selection for the index fund will be based on reasonably available data and is also subject to necessary judgement calls by management given data supply problems that currently exist in the cryptocurrency sector.
Portfolio Manager Discretion
The Portfolio Manager also has discretion to overweight or underweight the exposure to certain crypto currencies regardless of the benchmark index. This may result in over or under performance of the product relative to the benchmark index. Also, for this particular product, because the Portfolio Managers are also serving as the Index Calculation Agent, there may be a conflict of interest when changes are applied to the index calculation methodology.
Past Performance
Past performance is no guarantee of future results. The back-tested index performance is no guarantee of future results of the product, and is retroactively calculated based on historic values. Slippage, fees and market activities such as forks and splits may contribute to an over or under performance of the product relative to the benchmark index. The constituents of the index may not be mimicked completely by the product. Historical index based on January 2017 start date.
How to Invest in Wave Select 5 Index Fund
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get started*The material provided herein does not constitute an offer to sell or a solicitation of an offer to buy any interest in the Fund or any other securities. Any offering of a Fund will be made only in accordance with the terms and conditions set forth in the Fund’s private placement memorandum or similar document (Offering Materials) Please see IMPORTANT DISCLOSURES provided at the end of this presentation.
**WAVE DIGITAL ASSETS LLC IS REGISTERED WITH THE US SECURITIES & EXCHANGE COMMISSION AS AN INVESTMENT ADVISER, CRD 305726. PLEASE SEE THIS SITE FOR MORE INFORMATION, OUR DISCLOSURE BROCHURE AND OUR RELATIONSHIP SUMMARY HTTPS://ADVISERINFO.SEC.GOV/FIRM/SUMMARY/305726.
***FUND INTERESTS ARE SUITABLE ONLY FOR SOPHISTICATED INVESTORS FOR WHICH AN INVESTMENT IN THE FUND DOES NOT CONSTITUTE A COMPLETE INVESTMENT PROGRAM AND THAT FULLY UNDERSTAND AND ARE WILLING TO ASSUME THE RISKS INVOLVED IN THE FUND’S SPECIALIZED INVESTMENT PROGRAM. Certain criteria, including minimum financial status and experience may apply.
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