Monochrome Bitcoin Fund Summary

Monochrome Bitcoin Fund provides wholesale investors investment-grade bitcoin exposure. View our fund summary sheet to find out more.

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Fund Objective

Monochrome Bitcoin Fund (‘MBF’) is a capital growth fund that offers a regulated and familiar investment vehicle designed to track the price of bitcoin.

Platforms

Ratings

The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.

Fund Overview

As Bitcoin grows into a globally recognised store of value, the appetite for bitcoin as a strategic asset on institutional balance sheets continues to strengthen.

With negatively yielding investments becoming the new normal in a world of rising economic uncertainty, Bitcoin presents an uncorrelated and liquid alternative hedge against expansionary monetary policies.

MBF provides wholesale investors access to bitcoin exposure via a secure, regulated, and familiar investment vehicle; a unit trust.

Investment Strategy

The Fund will target a near 100% allocation to Bitcoin and securely store the asset with its custodian - US-chartered trust company, BitGo Trust. For risk management purposes MBF has adopted a strictly passive ‘buy and hold’ strategy and will not engage in derivatives, leverage, or short selling.

The units in MBF will appeal to investors within investor directed portfolio services (IDPS), managers of fund of fund mandates, and self-directed wholesale investors with self-managed super funds.

MBF as an investment solution, allows investors to enjoy Bitcoin ownership alongside traditional asset investments, without the need to engage with new technology and subsequent administrative burdens.

Volatility Chart

Correlation Chart

Hypothetical Portfolio Traditional 60/40 Fund + BTC allocation

Quant Reports. May 2022. Bitcoin 1% with 60/40 Allocation. Cumulative Monthly Returns.

Price of Bitcoin ($AUD) VS MBF Units

Investment Committee

David Hobart

David has been a trader and hedge fund manager for over 20 years, with roles at BT, Macquarie Bank and ABN Amro. Selling his hedge fund business to Blue Sky Alternative Investments in 2010, David managed Blue Sky's hedge fund division until 2015. He has been an investor in digital assets since 2015.

Jeff Yew

Jeff is the founder and former CEO of Australia's largest and most liquid Digital Asset exchange by trading volume. Under Jeff's leadership, in less than a year, Binance Australia amassed trade volumes of more than $20 billion AUD. Jeff has been active in the Bitcoin markets since 2013.

Jeff Leal

Jeff has over 17 years of experience across financial services, institutional execution, and digital assets, further enhancing and strengthening Monochrome's operating environment to support the plans of expansion across products and platforms. Jeff's experience spans top-tier such as Lehman Brothers, Nomura and most recently as the Global Head of Spot and eFX at BNY Mellon.