Diffuse Inc (“Diffuse”) is an alternative fund manager. Diffuse aims to use fund vehicles to give investors exposure to differentiated alternative asset investment strategies.
Diffuse Digital is a family of funds seeking to give investors digital asset exposure. Each product has a specific strategy to fit investor preferences (buy and hold, market neutral, high risk/reward, etc).
The products are privately offered “traditional” investment vehicles available to accredited individual investors through their respective private placements.
The first product in the family, Diffuse Digital 30, is an index fund providing exposure to the top 30 digital assets by market capitalization.
Our funds allow investors to invest in digital assets through a traditional fund vehicle to give financial advisors and investors peace of mind.
- Investors receive digital asset exposure without having to stay abreast of the market or purchase, transfer, and store digital assets themselves.
- Investors pay less in transaction costs, gas fees, and operational overhead through Diffuse Digital’s economies of scale….which should boost everyone’s returns.
Each fund may charge annual management fees, revenue activities fees, and/or performance fees. Please refer to the product page and offering documents for specific fee breakdowns.
DD30’s assets are stored in offline storage, or “cold” storage, with Coinbase Custody Trust Company, LLC (the “Custodian”). The Custodian Coinbase is a fiduciary under § 100 of the New York Banking Law and a qualified custodian for purposes of Rule 206(4)-2(d)(6) under the Investment Advisers Act of 1940, as amended. For more information about the Custodian, please visit their site.
Each product intends to take the position that it is a Reg D fund for U.S. federal income tax purposes. Assuming that such product is a Reg D fund, shareholders generally will be treated as if they directly owned their pro-rata shares of the underlying assets held in such product. Investors also will be treated as if they directly received their respective pro-rata shares of such fund’s income and expenses. Most state and local tax authorities follow U.S. income tax rules in this regard. Prospective investors should discuss the tax consequences of an investment with their tax advisors.
Only accredited investors are eligible to invest in Diffuse Digital funds. An accredited investor includes:
- Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
- Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (excluding the value of the person’s primary residence and certain indebtedness secured by such person’s primary residence).
In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
- Any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring shares of an Offered Product, whose purchase is directed by a sophisticated person; or
- Any entity in which all of the equity owners are accredited investors.
For this purpose, a sophisticated person means a person who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment.