- Digital asset management company IDEG expanding its Bitcoin-based services to Asia.
- The trust will have two funds: the Asia Bitcoin Trust I and Atlas Mining Trust I. Both are backed by Coinbase.
IDEG, a digital asset management company, has launched the first Bitcoin-based trust for Asia. According to the announcement the trust will be the first of its kind for the region. In a press release issued on December 8, IDEG made the launch official. The fund will be divided into Asia Bitcoin Trust I and Atlas Mining Trust I.
Remarkably, Coinbase will have a stake in both trusts. The platform provides the custody service for the trust. The Profound Trust Company will be the trustee of the fund, which will provide a total of US$200 million. IDEG has declared that is aims to bring new money in the market by opening up a new region. In the long run IDEG also aims to compete with Grayscale, the largest crypto asset manager.
The first of the funds, Asia Bitcoin Trust I, is an actively managed investment. In contrast, Grayscale’s Bitcoin trust is passively managed. IDEG states that its trust seeks to improve return on investment while offering its investors a legal, safe and professional exposure to Bitcoin. The second of the funds, Atlas Mining Trust I, is the first of its kind according to IDEG. The fund is an investment vehicle that allows investors to participate and share profits from Bitcoin mining.
IDEG CEO Keving Yang stated that the company has a long history of trading digital assets:
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.
Bitcoin has better performance than traditional assets
In addition, IDEG founder Raymond Yuan recognized the potential of Bitcoin. According to Yuan, institutional investors should begin to consider the asset as part of their asset allocation strategy. One of IDEG’s goals is to close the gap between traditional investors and digital assets. Yuan 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.
In addition, the founder of IDEG referred to the Bitcoin mining business. Yuan acknowledged that if individual miners have capitulated, it’ s because of the growing participation of institutions. Yuan said that the market has evolved strongly.
The participation of IDEG could bring more adoption for Bitcoin. However, it remains to be seen how the trust unfolds against its competitors. In a recent survey, it was revealed that Grayscale is the company of choice for millennials who want to invest in Bitcoin.
Bitcoin’s price at the time of writing was USD 7,248 and has suffered a loss of 2.77% in the last 24 hours.