IDEG Launches 2 Bitcoin Trusts in Asia

The company approached Coinbase for custodial services.

Digital asset management firm IDEG Investment on Sunday announced the launch of two crypto trusts – Asia Bitcoin Trust I and Atlas Mining Trust I.

Both the trusts were launched on November 27 in Hong Kong and were aimed for investments into digital assets.

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Commenting on the development, Raymond Yuan, founder of IDEG, said: “Bitcoin is a unique asset class that has no correlation with any traditional asset. Investing in Bitcoin can optimize the risk-to-reward ratio of portfolios.”

“It’s time for the institutional investors to include digital assets in their asset allocation strategies. Our positioning is to be a bridge to connect traditional investors and digital assets with the highest transparency and the highest security in the industry.”

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Bringing major investors close to digital currencies

Per the announcement, Asia Bitcoin Trust I is an actively managed vehicle, offering accredited and institutional investors “compliant, secure, and professionally wrapped bitcoin exposure supported by selected service providers” while Atlas Mining Trust I will allow traditional investors to participate and share profits from Bitcoin mining activities.

The combined size of the two funds is $200 million.

“We’ve been in the quantitative trading business for a long time. Some of our core members have been trading digital assets since 2013,” Kevin Yang, CEO of IDEG, said. “As the investment manager of the Trust, IDEG will apply a range of hedging and arbitrage strategies in order to gain more Bitcoin for the investors and meanwhile effectively control the risk of drawdowns.”

The company has tapped Coinbase Custody for custodial services to both the trusts.

“The mining business is quickly evolving, with more and more institutionalized miners stepping in. The keys to mining efficiencies in hardware, infrastructure and electricity costs. Individual miners are dropping out because institutional miners like us can improve in almost every aspect, including capex, opex, operation, and risk management,” Yuan added.

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