Specialty Funds invest in altcoins, DeFi tokens and protocol tokens.
Some are single-asset investment products; others are index funds. By investing through a private fund rather than purchasing the digital assets directly, investors gain exposure to the economics of the underlying digital assets while avoiding the hassles (and reducing the cost) of buying, storing and safekeeping the underlying digital assets.Digital Assets Specialty Funds are typically available only to accredited investors.
The funds are typically structured as limited partnerships or LLCs although some might be structured as trust vehicles. In some cases, shares are eligible for sale in the public market (with an accompanying premium or discount) after a six- or 12-month holding period. The minimum investment is typically $25,000 or more. Potential investors should ask about the fund’s subscription frequency, redemption availability/frequency, notice period for redemptions, management fees, placement fees, incentive fees (e.g., profit participation or carried interest), and tax reporting (Schedule K-1).
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The Bitwise DeFi Crypto Index Fund gives investors diversified exposure to one of the fastest-growing segments of the crypto ecosystem. The fund seeks to track an index of the largest decentralized finance (“DeFi”) crypto assets, a portfolio of protocol tokens that aspire to fundamentally disrupt large parts of the legacy financial ecosystem. Assets are screened and monitored for certain risks, weighted by market capitalization, and rebalanced monthly. Assets are held in custody with a regulated, third party custodian.
Pantera Early-Stage Token Fund offers investors exposure to early-stage tokens with liquidity horizons of 1-3 years. The Fund invests in teams building new protocols in the blockchain ecosystem and follows an early-stage, venture-style model. The fund is fully-discretionary, investing only in what the Pantera management team believes are the most disruptive, scalable and promising blockchain applications and protocols.
Grayscale Stellar Lumens Trust invests solely in Stellar Lumens (XLM), a protocol token powering a platform connecting banks and payment systems.
Grayscale Ethereum Classic Trust (ETCG) invests solely in Ethereum Classic (ETC), the original Ethereum token.
Grayscale Bitcoin Cash Trust
Grayscale Basic Attention Token Trust
Grayscale Chainlink Trust
Grayscale Decentraland Trust
Grayscale Filecoin Trust
Grayscale Litecoin Trust
Grayscale Livepeer Trust
Grayscale Zcash Trust
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