California-based asset manager Cambrian Asset Management, which has $200 million of assets under management, plans to launch actively managed Bitcoin and Ethereum trusts for accredited investors. Their goal is to protect against significant drawdowns, Bloomberg has reported.
The management fee will be 4% of the AUM volume, while the minimum investment will be $50,000.
The company plans to organize secondary trading in trusts in a year.
In an interview with The Block, the company CEO Martin Green did not rule out that the Cambrian Bitcoin Systematic Trust and the Cambrian Ethereum Systematic Trust will become available to retail investors after the firm receives regulatory approval.
The investment declaration of trusts does not imply the use of short positions and leverage. When a bearish signal is generated, managers will either sell the underlying asset or use derivatives in order to hedge the position.