Bo J. Howell, Shareholder at Strauss Troy, is working with IDX Advisors to launch the first U.S. mutual fund for Bitcoin futures. The IDX Risk-Managed Bitcoin Futures Strategy Fund (BTIDX) has more
than 50% exposure to Bitcoin futures during normal market conditions. As noted by Coin Rivet, the “bespoke managed risk approach could be attractive to investors keen to gain portfolio exposure to Bitcoin, but reluctant to risk their cash in the tricky volatility of crypto markets.”
IDX Advisors, a quantitative asset manager in the crypto and digital asset space, uses a strategy that seeks to reduce downside exposure to Bitcoin futures markets. Ben McMillan, CIO and founder of IDX Advisors, told Blockworks that the fund “is very different than a static, long-only exposure, which we believe does not make sense for many investors. We designed this product mainly for institutional investors and fiduciaries that are very risk-conscious and are looking for what we believe is prudent exposure to the asset class.”
In talking about the recent fund launch, Andrew Swan noted on Yahoo Finance that “the excitement around the rapid development of blockchain technologies, mixed with the realization of accommodative monetary stimulus policies, increasing geo-political tensions, and materializing concerns over inflation growth, all have investors seeking exposure to asset classes such as digital assets. Specifically, investors and advisors are expressing a strong appetite for digital assets exposure but desire a risk-managed approach that focuses on mitigating the inherent volatility and drawdowns common with the emerging asset class; this is what IDX seeks to provide”, says Andrew Swan, co-founder and CEO of IDX.”
Bo Howell, who is also a founder of Joot—a digital compliance firm, has been working closely with IDX Funds and IDX Advisors to launch the product. He noted that given the novelty of digital assets in mainstream capital markets, launching the product required close engagement with the SEC. Howell also noted that at the end of the day, “we were successful in launching the fund because IDX Advisors and Gryphon Group [the fund’s administrator] were familiar with both digital asset markets, the regulatory landscape and were able to demonstrate that this type of fund was ready for a mutual fund structure.”
About Strauss Troy
Strauss Troy is recognized by U.S. News – Best Lawyers® as among the Best Law Firms in 2022. Strauss Troy has earned 16 metropolitan rankings and was nationally ranked in Project Finance Law. The firm maintains offices in Cincinnati, OH and Covington, KY.
About IDX Advisors
IDX Advisors is an SEC-registered investment adviser and a quantitative asset manager that specializes in solving for the common difficulties associated with owning digital assets as a fiduciary. IDX maintains offices in Phoenix, AZ and Tampa, FL, and advises on assets of $610 million.