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According to a press release published on 26 May, Securitize Capital will launch two flagship funds in early June. They will provide investors with direct exposure to Bitcoin and USD Coin (USDC), offering bigger yields and lower fees than other funds on the market. Both funds will have a traditional security structure and a management fee of 0.5%.
All of this will enable the funds to play a unique role as part of investors’ balanced portfolios, as they’re unlikely to move in sync with the traditional financial markets. This, the company said, makes them potential hedges against other market movements and strong potential drivers of yield.
Carlos Domingo, the CEO of Securitize, said that the company has seen very strong demand from institutional investors for crypto exposure. Aside from just holding cryptocurrencies, investors have been seeking access to the yield generated by DeFi protocols.
“There is nothing in the marketplace like the institutional-grade funds we are announcing today and we look forward to introducing more products like this in the future,” he said in the company’s release.
Customers of Securitize Capital will also be able to access a broad range of investment options, including private equity, debt, commodities, funds, and other alternative assets. The company has partnered with Anchorage Lending, an affiliate of Anchorage Digital Bank, and Genesis, a prime broker, to enable lending opportunities. The funds will be administered by MG Stover & Co and audited by Spicer Jeffries.