Starting a Cryptocurrency Hedge Fund
Starting a cryptocurrency hedge fund offers tremendous opportunity. Cryptocurrencies, such as Bitcoin and Ethereum, are lightly regulated convertible virtual currencies based on distributed ledger technology, commonly known as the blockchain. In recent years, adoption of cryptocurrencies has grown at a rapid rate as more consumers and merchants have accepted leading cryptocurrencies as mediums of commercial exchange. At the same time, both novice and sophisticated traders and investors have flocked to cryptocurrency markets seeking extreme returns, and in the process injecting over $6 billion into the marketplace. Moreover, regulated products such as Bitcoin futures and swaps have been introduced, further signaling the broader acceptance of cryptocurrency as a financial asset class. As a result, there exists a significant market opportunity for starting a cryptocurrency hedge fund.
Seizing on these opportunities, asset managers have brought to market a flood of private pooled investment funds focusing on cryptocurrencies and their derivatives. The legal and regulatory environment that these asset managers face is exceedingly complex and evolving on a near weekly basis. Seemingly well-settled areas of law, such as commodities, securities, payments, privacy and tax are in again in flux when applied to cryptocurrency-based hedge funds. The cryptocurrency hedge fund formation experts at Wabash Advisors advise fund managers launching funds in this dynamic arena. Wabash Advisors is keenly aware of the customized solutions each cryptocurrency hedge fund manager requires and has consistently delivered those expert solutions to its clients.
Wabash Advisors Offers
Our turn-key cryptocurrency hedge fund formation solution includes:
- Formation of Domestic limited liability company (management company) together with LLC operating agreement, investment management agreement, organizational meeting minutes/resolutions, founder subscription agreement, membership unit ledger, physical certificates.
- Formation of Domestic limited partnership (Master Fund) together with limited partnership agreement, investor due diligence questionnaire, investor subscription agreement, limited partnership unit ledger, certificates of partnership, capital call and distribution notices, UBTI agreement/entity.
- Formation of Offshore limited partnership (Feeder Fund) limited partnership agreement, investor due diligence questionnaire, investor subscription agreement, limited partnership unit ledger, certificates of partnership, capital call and distribution notices, UBTI agreement/entity.
- Draft and prepare comprehensive, investor-ready private placement memorandum.
- Prepare and file SEC Form D, State Blue Sky filings and other regulatory filings, as applicable.
- Fund registration with local jurisdiction, as applicable.
- Anti Money Laundering, Know-Your-Customer, code of ethics, valuation policy and Disaster/Data Loss policy.
- Investor Pitch Deck development and preparation and related investor correspondence.
- Consultation and review of fund marketing materials and investor pitch.
- Hedge Fund banking introductions.
- Introductions to capital sources, including high net worth individuals, institutions, family offices and funds of funds.
Trust our over twenty-five years’ experience in creating innovative fund solutions for our clients. Contact the cryptocurrency hedge fund formation experts at Wabash Advisors to begin the process of starting your cryptocurrency hedge fund today. Our knowledgeable and skilled professionals are happy to answer all of your questions. Call contact us here.for your free consultation or
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- (213) 534-8656
- 9107 W. Wilshire Blvd.
Beverly Hills CA 90210