Wilshire Phoenix, an investment firm that provides multiple services including advisor and asset management, has partnered with Coinbase Custody on a $500 million crypto fund.
Coinbase Custody is part of digital asset marketplace Coinbase which claims more than 25 million global customers.
According to Wilshire Phoenix, the fund will invest in Bitcoin and other digital assets while employing “a novel approach to mitigate some of the risks typically involved from the sudden and substantial price movements of Bitcoin.” The fund, which is designed to make it easier for both institutions and individual investors to gain exposure to crypto, will be launched before the end of the year
The fund will not use derivatives or any form of leverage to boost returns. It will not replicate a direct investment in Bitcoin but will strive to provide exposure to Bitcoin “while mitigating some of the risks involved from sudden price movements of Bitcoin.”
Wilshire Phoenix adds that their fund may solve an issue regarding purchasing and holding Bitcoin that envolves GAAP issues. The company says they have a patent pending solution to solve the hurdle.
In addition, investors together with financial institutions may find it difficult to purchase and hold Bitcoin due to pricing models around Generally Accepted Accounting Principles (U.S GAAP). We trust that our system, which is patent-pending, may also solve this important issue. The fund will not use derivatives or any form of leverage to achieve its objective. This will limit counterparty exposure and the often unnecessary additional fees that are normally associated with these types of financial products or methods.
“Coinbase Custody provides Wilshire Phoenix a best in class platform on which to securely store digital assets. They are steadfast in their commitment to implementing and executing solutions for institutional clients as opposed to merely talking about their future plans to do so,” said Bill Herrmann, Founder & CEO of Wilshire Phoenix.
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