Digital Assets Regulated Fund (Bitcoin & Ethereum)

Investment Overview

This regulated fund provides institutional-grade exposure to Bitcoin (BTC) and Ethereum (ETH) — the two largest digital assets by market capitalisation — without requiring investors to manage private keys, digital wallets, or exchange accounts directly. The fund holds the underlying digital assets on behalf of investors through an insured, regulated custodian, providing the security and regulatory oversight of a conventional investment fund structure. (Funds holding spot digital assets fall outside the UCITS framework, which does not permit direct cryptocurrency holdings; this fund is structured as a regulated alternative investment fund.)

The portfolio is maintained at a target weighting of 60% Bitcoin / 40% Ethereum, rebalanced quarterly. This weighting reflects Bitcoin's role as the dominant store-of-value asset in the digital asset space and Ethereum's position as the leading programmable blockchain with the most developed ecosystem of decentralised applications, DeFi protocols, and tokenised assets.

Why a Regulated Fund Structure?

The principal challenge for international investors seeking cryptocurrency exposure is custody — the secure storage of private keys that control digital assets. Self-custody requires significant technical knowledge, robust security practices, and carries the risk of irrecoverable loss if private keys are lost or compromised. Exchange custody (holding assets on a centralised exchange) carries counterparty risk — as demonstrated by the collapse of FTX in 2022, where exchange clients lost billions of dollars of assets.

This fund eliminates direct custody risk by holding assets with a regulated, qualified custodian operating under applicable financial regulations, with insurance coverage against custodial failure and cyber theft. Investors hold units in the fund — a regulated claim — rather than holding digital assets directly.

Digital Asset Risk Factors

Extreme price volatility: Bitcoin and Ethereum have experienced drawdowns of 70–85% from peak to trough on multiple occasions. An investor who invested at a market peak in late 2021 saw the value of their holding decline by over 75% within 12 months before subsequent recovery. This level of volatility is categorically different from equities, bonds, or other conventional investment classes. Investors should be able to withstand the loss of their entire investment.

Regulatory risk: Cryptocurrency regulation is evolving rapidly across all major jurisdictions. Potential regulatory actions — restrictions on holding, trading, or staking digital assets; taxation changes; prohibition in certain jurisdictions — could materially and adversely affect the price and usability of Bitcoin and Ethereum. No jurisdiction has yet provided comprehensive long-term regulatory clarity.

Technology risk: Both Bitcoin and Ethereum are software protocols. While both have operated continuously for over a decade, they are subject to protocol-level bugs, hard forks, and the risk of competition from superior successor technologies. Ethereum in particular has undergone significant protocol changes (the transition to Proof of Stake in 2022) and continues to evolve.

Liquidity risk: Despite substantial improvements in digital asset market liquidity, large institutional trades can still move prices materially. In periods of extreme market stress — particularly correlated with risk-off sentiment in broader financial markets — liquidity can deteriorate rapidly. The fund offers monthly subscriptions and redemptions; in exceptional market conditions the manager may suspend dealing.

Correlation to risk assets: Bitcoin and Ethereum have shown a tendency to correlate with risk assets (equities) during broad market sell-offs, limiting their diversification benefit precisely when it is most needed. This was demonstrated in March 2020 and throughout 2022. The long-term correlation to traditional assets remains an area of academic debate and observed data is limited to a relatively short history.

Who Should Consider This Investment

This fund is appropriate only for sophisticated investors who: understand the nature and risks of digital assets in full; accept that the value of their investment can fall to zero; are allocating no more than a small proportion (typically 1–5%) of their overall portfolio; have a medium-to-long investment horizon (minimum 3–5 years is prudent given the volatility cycle); and are not relying on this investment for income or capital preservation.

This fund is not suitable for any investor who: cannot afford to lose all of the capital invested; requires income from the investment; has any degree of capital preservation as an objective; or is unfamiliar with digital assets and blockchain technology.

How to Enquire

Contact our investment team to receive the fund prospectus, Key Investor Information Document, most recent factsheet, and subscription documentation. We will confirm current pricing, portfolio allocation, and custodian details. This fund is available to sophisticated and high-net-worth investors only, subject to confirmation of eligibility under applicable regulations in your jurisdiction.

Speculative Investment Warning: This is a highly speculative investment. The value of digital assets can fall dramatically and rapidly. There is a real possibility that you could lose all of the money you invest. This investment is not suitable for most investors. Do not invest money you cannot afford to lose in its entirety. Seek independent financial advice before investing.