Digital asset manager IDEG is launching what it claims are Asia’s first Bitcoin (BTC) trusts.

The two new funds — Asia Bitcoin Trust I and Atlas Mining Trust I —  were officially announced in a press release on Dec. 8, confirming an earlier disclosure from the firm in Hong Kong in late November. 

Coinbase Custody will act as custodian for both trusts, with Asia-based Profound Trust Company acting as trustee. The combined size of the two trusts is $200 million.

 

Bringing old money to a new sector

The first of the two funds, Asia Bitcoin Trust I, is an actively managed investment vehicle and as such, is being pitched by the firm as a contrast to Grayscale’s flagship Bitcoin Trust , which has seen consistent year-on-year appreciation, outstripping many traditional investments.

Whereas Grayscale’s trust is passively managed, IDEG is setting its approach apart from that of  its predecessor, as the firm’s CEO Kevin Yang states:

"As the investment manager of the Trust, IDEG will apply a range of hedging and arbitrage strategies in order to gain more Bitcoin for the investors and meanwhile effectively control the risk of drawdowns."

IDEG is aiming to further drive traditional investors to include crypto in their allocation strategies by offering a second trust that enables investors to share in the profits generated from IDEG’s mining business.

In his statement, IDEG founder Raymond Yuan claimed that the firm is seeing solid return ratios on its mining activities because of its focus on capex, opex, operational and risk management strategies, as well its capacity to invest in hardware and infrastructure.

“Individual miners are dropping out because institutional miners like us can improve in almost every aspect,” he claimed.

 

US precedents

As reported, Grayscale’s highly-successful Bitcoin Trust (GBTC) has recently filed a Form 10 with the United States Securities and Exchange Commission (SEC) in a bid to become the first crypto fund to report to the regulator.

If approved, this would designate the fund as an SEC reporting company and require it to register its shares under the country’s Exchange Act. Ostensibly, given that many institutions hinder investors from considering trusts that lack SEC-approval, Grayscale’s eligible investor base could widen considerably should the filing be successful.

As Cointelegraph reported in September, another U.S.-based investment management firm VanEck has also launched its own Bitcoin trust, but gained relatively low traction in the first week of its operations.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Predictions: Bitcoin bull Tom Lee says 2020 will be positive for BTC

Bitcoin (BTC) has lost nearly 6% of its value during recent seven days and hit the low of $8,217 on Friday. At the time of writing, BTC/USD is changing hands at $8,330 with the short-term recovery capped by SMA50 1-hour at $8,370. 

More Bitcoin News

Tron's Price Analysis: TRX/USD may recover towards $0.0171

TRON's TRX, now the 12th largest digital asset with the current market value of $1 billion, has lost about 1.5% in recent 24 hours. The coin has been moving in sync with the market amid growing bearish sentiments. Tron's 7-day volatility peaked at ...

More TRON news

LTC/USD recovery stalled as Charlie Lee mulls the idea of miners' donations

At the time of writing, LTC/USD is changing hands at $53.20, down nearly 2% since the beginning of the day. The seventh larges digital asset with the current market value of $4.3 billion has been moving within a short-term bearish trend amid low volatility. 

More Litecoin News

Cryptocurrency Market Update: Bitcoin locked in a range after volatile week

The cryptocurrency market has been moving sideways with bullish bias during early Asian hours on Sunday. Saturday's sell-off did not yield into a big move and several altcoins reversed from support levels and attempted recovery. The cryptocurrency market capitalization edged to ...

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Bitcoin bulls and bear fight gets a tougher edge

The cryptocurrency market started the downside correction after a strong rally initiated by risk reversal play at the beginning of January and reinforced by various altcoin pumps...

Read the weekly forecast

BTC

ETH

XRP