A professionally risk-managed Bitcoin product designed to transform BTC volatility into stable yielding income.
Objective
WBIG offers a way for Bitcoin investors to improve their risk profile versus holding pure BTC spot exposure.
Methodology
Investors retain Bitcoin exposure through BTC held in the Fund. At the end of each month, the Fund is structured to sell one-month call options backed by the Bitcoin held in the Fund, so that it collects a premium from option sales, and aims to pass that premium through to investors in the form of a monthly dividend.
The Fund aims to produce 1.0% of AUM in dividends per month (12% per annum).
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Income and Growth
Investment objective to deliver target monthly USD dividends of 1.0% while still capturing potential upside.
Convenience
Fund structure vehicle lowers administrative barriers and provides access to expertise of managing.
Liquidity
Monthly redemption periods with no lockup. WBIG may be tokenized in the future to allow for 24/7 trading.
Security
State of the art custodians and counterparties reduce risk and are selected to professionally custody and transact digital assets in the fund.
Hedged Volatility
WBIG investors may profit while being managed against volatility, allowing risk-managed exposure for potential to BTC.
Tax Considerations*
Designed to enable Bitcoin cost-basis to roll over upon investment for U.S. investors.
*Wave Digital Assets recommends that potential investors seek professional tax counsel
Employs covered call strategy by holding funds in BTC and selling call options monthly, targeting 1.0% monthly dividend (12% Pa) while seeking to capture monthly price appreciation, may be paid out monthly or reinvested.
How it works
01
Investors retain Bitcoin exposure through BTC held in the fund.
02
At the end of each month, our Fund Manager sells one-month call options backed by the Bitcoin held in the fund.
03
We collect a premium from option sales, and pass that premium through to investors in the form of a monthly dividend. (Net of fees.)
Management fee on NAV
1%
Fee on premium
5%
% of original investment
3%
Potential for Enhanced Yield
WBIG targets an annual 12% yield* through the sale of ~20% out of the money BTC options.
Stable Returns
WBIG strives to smooth out the volatile BTC return profile by converting that volatility into high yield.
Service Providers
Risk Factors
Market Risk
Bitcoin remains a speculative investment and involves a high degree of risk. Investors must have the financial ability, sophistication, experience and willingness to bear the risks of an investment, and a potential total loss of their investment. Wave BTC Income & Growth Digital Fund limits Bitcoin’s potential upside appreciation to ~20% on average a month. The fund manager has flexibility to write options further out of the money, depending on market conditions and volatility. While current Bitcoin option market conditions forecast up to a 1.0% monthly dividend, call option premiums may increase or decrease as volatility and market dynamics shift.
Liquidity Challenges
Wave Digital Assets has provided the ownership in fund format and has not issued the ownership tokens at this time. While we expect there to be listing within 3 months of issuance, there is no guarantee of liquidity given the nascency of regulated security token exchanges.
Past Performance
Past Performance is no guarantee of future results. The back-tested performance is no guarantee of future results of the product, and is retroactively calculated based on historic values. Slippage, fees and market activities may contribute to an over or under performance of the product relative to the benchmark. Historical performance on slide 12 is based on a hypothetical portfolio with a November 2019 start date.
Counterparty Risk
While Wave Digital Assets will undergo extensive due diligence for any derivative exchanges or OTC desks to minimize counterparty risk, the nature of call overwrite strategies inherently assumes some degree of counterparty risk.
How to Invest in Wave BTC Income 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.
Services
Our team has deep institutional experience managing third-party capital across traditional and decentralized finance, in particular venture capital, derivative, lending, and staking expertise.
In addition, we have built strong relationships with institutional service providers leveraging our blockchain and digital assets network across the world.
Treasury Management
Wave’s Corporate Treasury Management services include digital asset lending programs and derivative strategies designed to capture additional yield and fine-tune risk, with a range of qualified custodians and counter-parties. Wave also operates across multiple DeFi protocols for lending, borrowing, trading, yield farming, staking, and mining. Wave applies our deep experience in digital asset strategies to bespoke risk managed portfolios. Wave Digital Assets is SEC regulated focused exclusively on digital assets, and have a fiduciary duty to protect our clients.
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Your ultimate solution for digital asset portfolio management, combining custody, execution, and tailored investment strategies.
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