T10 Crypto Ltd is aiming to be the first Australian cryptocurrency index fund.
T10 Crypto Ltd has been founded by BitFunds who are an Australian based digital asset manager. BitFunds are planning to list T10 Crypto Ltd fund on the National Stock Exchange of Australia (NSX). T10 Crypto Ltd will be an Index crypto fund made up of the top 10 largest cryptocurrencies weighted by market capitalisation. This index will not include Bitcoin meaning the Index will basically be made up of the 2nd to 11th ranked cryptocurrencies in the market. Rebalancing of the portfolio will take place on a monthly basis.
The initial NAV of T10 Crypto Ltd will be $1 with plans for their capital raising reaching a minimum of $15m with a maximum of $30m assets under management. T10 Crypto Ltd will charge a crypto fund management fee of 2% per annum of total assets under management and a performance fee of 10% for the fund. The minimum investment in the fund will be $2,000 with the NAV calculated on a monthly basis.
Looking at the T10 Crypto Ltd fee structure, it is quite aggressive for an Index fund and more inline with what a traditional actively managed crypto hedge fund would charge. Although there are transaction associated with the buying/selling of the coins on a monthly basis it is likely these costs would be deducted from the assets under management. In our opinion there shouldn’t be a performance fee and the management fee shouldn’t be more than 1.2% per annum.
It will be interesting to see how T10 Crypto Ltd performs in relation to other Australian based cryptocurrency hedge funds. T10 Crypto Ltd are really in a good position because if they can achieve returns similar to the actively managed cryptocurrency hedge funds then they can demand similar fee structures.