Cambrian Asset Management launches systematic bitcoin and ether trusts
Cambrian Asset Management (Cambrian ), a quantitative investment firm specialising in digital assets, has launched the Cambrian Bitcoin Systematic Trust and the Cambrian Ethereum Systematic Trust (the Trusts).
The Trusts are the first of their kind and designed for institutional and accredited individual investors with existing or seeking exposure to bitcoin or ether. The Trusts feature an actively managed systematic strategy that looks to manage downside risks and maintain substantial upside potential while seeking to defer taxable events for their investors.
The Trusts will leverage the same systems employed by Cambrian with respect to its other strategies, which trade over 50 digital assets. Cambrian's systems are informed by over 100 billion historical market data points going back to 2014 and utilise proprietary execution algorithms that update in milliseconds to manage risk 24/7/365. Over the past nearly three years, these strategies have generated compound returns that are higher than a digital asset passive index, while suppressing downside volatility by greater than 70 per cent.
Qualified accredited investors can subscribe directly to the Trusts, which require an initial minimum investment of USD50,000 in cash or in-kind, at www.cambrianasset.com. Cambrian expects to file an application with OTC Markets for approval for public trading of shares of the Trusts approximately 12 months after the date of the first subscription.
"We are excited to offer a new way of investing in digital assets through the launch of these new Trusts," says Martin Green, Co-CIO and CEO of Cambrian. "Investors have asked us many times if they can use our systems to actively manage their bitcoin or Ethereum exposure to protect against the material drawdowns that are endemic to digital assets markets. These Trusts seek to do just that and provide the same benefits to investors seeking to gain their first exposure to bitcoin and Ethereum."
"Demand for digital assets only continues to increase, especially among sophisticated institutional investors and family offices, who, because of the volatility of digital assets, are increasingly looking for a strong track record of active management," says Tony Fenner-Leitao, President of Cambrian. "We are proud to help investors tap into and benefit from the uncorrelated alpha that these assets can offer."
The Trusts will utilise JP Morgan Chase Bank, NA as an initial fund administrator for preparation of NAV on a monthly basis and the preparation of the Trusts' annual financial statements. Sudrania Fund Services Corporation will serve as an initial fund administrator for the Trust's investor subscription processes, shareholder statement preparation, and calculation of daily NAV. Ernst & Young will serve as the independent certified public accountants of the Trusts.
Anchorage Digital Bank National Association, Coinbase Custody Trust Company, Gemini Trust Company, LLC, and NYDIG Trust Company LLC will serve as initial custodians for the Trusts. Chapman and Cutler LLP is serving as legal counsel. Signature Bank will serve as the Trusts' bank.