LA-based Wave Financial’s novel crypto-derivatives fund scores triple-digit return amid bitcoin volatility

Bitcoin volatility

A novel cryptocurrency fund run by digital assets-focused investment manager Wave Financial, which uses a call options strategy to trade on bitcoin’s volatility, has scored a near-146 per cent return in its first year of trading.

The Wave BTC Income & Growth Digital Fund, a pioneering cryptocurrency derivatives-based strategy, aims to capitalise on bitcoin’s high volatility using a covered call approach to generate returns, while also capturing the potential upside of the currency.

The fund – whose investor base comprises a mix of institutions, family offices and high-net worth individuals with experience in both digital assets and traditional financial market – notched up a 145.8 per cent annual gain in first full year of operation.

Benjamin Tsai, president of Los Angeles-based Wave, said the strategy achieved a stable return in what is still considered a particularly volatile asset class.

“The income component is particularly compelling in the current low yield environment,” Tsai noted.

Matteo Dante Perruccio, president international at Wave, added: “WBIG is a fund that is specifically designed to provide investors with significant exposure to bitcoin, whilst offsetting volatility from such exposure and with the aim of generating a stable return. WBIG strives to smooth out the volatile bitcoin return profile by converting that volatility into high yield.”

Wave Financial is the digital assets unit of London- and Los Angeles-based Wave Financial Group, the parent company set up in 2018 by CEO David Siemer, a venture capital, private equity and hedge fund specialist focused on digital assets, and Tsai, former managing director of structured products at Merrill Lynch in Asia.

Wave Financial, which brings together a team of investment managers with expertise in asset management and investment banking in the US and Europe, offers a range of investable funds to private and institutional investors focused on digital assets and tokenised real assets.