Summary:
Superstate launches a new tokenized fund that aims to profit from the 'carry trade' strategy.
The fund uses an ERC-20 token (USCC) on the Ethereum blockchain to generate yield for holders.
The strategy involves buying spot Bitcoin (BTC) and Ether (ETH) and selling futures contracts on the same assets.
Superstate's fund is designed for qualified investors and offers a highly-regulated and transparent investment option.
The fund utilizes prime brokerage firms for futures trading and Anchorage Digital as a custodian for spot assets.
Superstate Launches New Tokenized Fund Focused on Bitcoin and Ether Carry Trade
Blockchain-based asset management firm Superstate has introduced a new tokenized fund designed to generate yield from the popular "cash and carry" investment strategy. This strategy involves buying spot Bitcoin (BTC) and Ether (ETH) while simultaneously selling futures contracts on the same assets.
The fund's USCC token, an ERC-20 token on the Ethereum blockchain, will generate yield for its holders by profiting from the difference in price between spot and futures markets. This strategy offers a delta-neutral position, meaning the fund can benefit from market movements without taking directional bets on price changes.
Superstate's fund distinguishes itself from similar products like Ethena Labs' USDE token by its unique structure and focus on qualified investors. While Ethena's token generates yield from funding rates on perpetual futures, Superstate's fund focuses on selling futures with specific maturity dates, aiming for a more predictable return.
Superstate has partnered with prime brokerage firms to execute the futures trades, while spot assets are held with custodian Anchorage Digital. The company's new offering follows the successful launch of its first tokenized fund, which holds short-term U.S. Treasury bills and has amassed nearly $80 million in assets since its debut earlier this year.
Superstate's new fund presents a compelling opportunity for qualified investors seeking to generate yield from the Bitcoin and Ether markets in a highly-regulated and transparent environment.
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