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Diffuse® Digital 30, LP

Institutional
digital asset index fund

Eligible for Profit Share
Contact Us to Learn More

Diffuse® Digital 30, LP

Institutional
digital asset index fund

For investors who want broad-based digital asset exposure

Investment Objective

DD30 seeks to give Limited Partners passive exposure to the digital asset class with greater peace of mind and efficiency than investing directly

Profit Share

10% of the fund’s GP’s profits are distributed to investors who commit capital before the fund reaches $10M in AUM, tiered by the time of capital receipt. The earlier the investment the larger the profit share.

Contact us here to learn more >

Fund Constituents

Top 30 digital assets by market capitalization, excluding wrapped coins and stablecoins, that are able to be held with a qualified custodian

Fund Composition

Each digital asset’s representation in the basket is based on the month-end market capitalization

Fund Weighting

Market cap-weighted

Rebalance Frequency

Monthly

Type of Fund

An open-ended 506(c) Regulation D vehicle

Fees

2% per annum Management Fee

20% staking and lending Revenue Activity Allocation

No performance fee tied to digital asset price appreciation

Investor qualification

Accredited investors only

Min investment

$250k minimum until the fund reaches $5 MM in assets under management, subject to GP discretion

Redemption

Monthly redemptions, no lock-up

Index

DD30 does not currently have a reference index but Diffuse intends to select and start tracking one soon

DD30
Product
Description

In 2019 the story of digital assets had two protagonists: Bitcoin and Ethereum. With the rise of competitor blockchains and decentralized finance (DeFi) the story now has an ensemble cast.

Investors are desperate for digital asset exposure but fund producers largely focus on BTC and ETH.

We’ve not seen an efficient way to invest in the whole ensemble (i.e., a diversified basket of all the star digital assets).

So we’ve created it…

DD30
Key Features

Diffuse Digital 30 aims to be a true CAPM ‘beta’ product (i.e., passive market exposure). 

We believe “stock picking” underperforms. Warren Buffett and the Nobel Committee agree with us.

Our passive selection methodology:

  • Ranks all digital assets by their market capitalization (ignoring known burned supply)
  • Removes any stable coins, wrapped coins, or non-tradable coins
  • Invests in the top 30 remaining in proportion to their market cap
  • Rebalances monthly

Diffuse Digital 30 is designed to give comfort to institutional allocators.

In addition to the ‘beta’ core, we:

  • Are choosing service providers (legal, audit, fund admins, etc) who are respected in traditional markets
  • Intend to benchmark our performance against a third party published index which DD30’s investment committee will take an active role in developing
  • Are assembling an IC of renowned leaders in both traditional and digital finance

Institutions require rigorous fiscal controls, governance, and regulation.

Digital assets aren’t quite there yet:

  • Credible custodians only support 16 of the top 30 assets (as of 3/1/2021)
  • The SEC has not approved any ETF/mutual funds which creates tax leakage
  • Native lending and staking capabilities are limited

But the pieces are coming fast… so we’re skating to where the puck is going to be. We plan to:

  • Launch with multiple custodians but consolidate to one qualified custodian once they have sufficient coverage
  • Convert the fund into an ETF or mutual fund as soon as practical
  • Incorporate lending/staking (less index slippage) once it’s sufficiently de-risked.

DD30
Meet The Team

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Kenny Estes

Fund Manager

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Ayla Kremb

Operations

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Eric Long

Technology

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Jens Jorgensen

Technology

maximize

DD30
Service Providers

Inter-disciplinary group specializing in digital assets securities law, private and public funds, tax, and regulations and an active member of the Wall Street Blockchain Alliance and the Digital Chamber of Commerce

US qualified custodian operating as a standalone, independently-capitalized business to Coinbase, Inc. which segregates and holds digital assets in trust on behalf of their clients

Full-service fund administration firm delivering world class solutions in the alternative investment space

Award winning tax and accounting firm with a dedicated digital assets team

Crypto-only data provider and index publisher

A self-regulatory association for the digital assets and cryptocurrency industry