Ether-Only Private Funds

Ether-Only Private Funds (often referred to as “Ethereum funds”) offer exposure to ether (ETH), the native token of the Ethereum blockchain.

By investing in an ether-only private fund, investors gain exposure to ether (and the Ethereum blockchain network) while avoiding the hassles (and reducing the cost) of buying, storing and safekeeping ether itself.

Ether-Only Private Funds are typically structured as Limited Partnerships or LLCs and are offered only to Accredited Investors through an Offering Memorandum or Private Placement Memorandum. In some cases, the funds may be structured as trust vehicles allowing investors to directly purchase shares of the trust from the trust. These shares may be 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).

Opportunities From These Leading Firms

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Galaxy Fund Management

Galaxy Investment Partners LLC, headed by Mike Novogratz (founder of Galaxy Digital), sponsors Galaxy Ethereum Fund (minimum investment $25,000) and Galaxy Ethereum Institutional Fund (minimum investment $250k onshore/$100k offshore). The Funds seek to mitigate the complexities of investing in Ethereum, providing outsourced trading, operations, finance, and custody/private key protection.

3iQ Digital Asset Management

The Ether Fund by 3iQ (TSX: QETH.U & QETH.UN) is a closed-end fund that issued a fixed number of units. Units were offered to the public during the Initial Public Offering (IPO) in December 2020 and private placements to accredited investors.

Bitwise

Bitwise Investment Advisers sponsors the Bitwise Ethereum Fund.
The minimum investment is $25,000. Theorem Fund Services administers the Fund. Coinbase Custody Trust Company holds the ether in multi-signature cold storage.

BlockFi

BlockFi Ethereum Trust provides passive exposure to Ethereum (ETH) in a trust vehicle, helping solve the challenges of buying and storing Ethereum directly.

Some companies listed underwrite or sponsor RIADAC and/or its educational programs. Neither RIADAC nor its affiliates, partners, subsidiaries or employees
are responsible for the products or services provided by any company listed. You should conduct your own due diligence before purchasing products or services.