The Fund seeks to reflect the performance of Bitcoin less operating expenses. Available to both accredited U.S. investors as well as qualified offshore investors.
- Direct exposure to bitcoin, the largest and most liquid cryptocurrency.
- Simplified approach that alleviates the operational burden of direct bitcoin
ownership with bitcoin safeguarded by a 3rd party custodian.
- Direct subscriptions and redemptions allow for entry and exit at NAV.
The investment objective of the Partnership is to reflect the performance of bitcoin less operating expenses of the Partnership. In seeking to achieve its investment objective, the Partnership will own bitcoin and will value its assets monthly (or more frequently, in the sole discretion of the General Partner) based on the reported MVIS® CryptoCompare Bitcoin Benchmark Rate, which is calculated based on prices contributed by exchanges that the General Partner's affiliate, MV Index Solutions GmbH ("MVIS"), believes represent the top five bitcoin exchanges based on the industry leading CryptoCompare Exchange Benchmark review report.
Inception: April 2021
Management Fee: 1.00%
Performance Fee / Redemption Fee: None
Min. Investment: $100,000
Additional Investment: $25,000
Investor Type: U.S. Accredited Investors / Qualified Offshore Investors
Redemptions: Quarterly (with 30 day’s notice)
An investment in the interests involves a high degree of risk. Such an investment should be considered only by investors who have sufficient knowledge and experience to evaluate the merits and risks of the investment and who have carefully read this memorandum. The interests should be purchased only by a person whose financial position would permit such person to bear the economic risks of such an investment, including a complete loss of the investment. The interests are suitable only for investors for whom an investment in the partnership does not constitute a complete investment program and who fully understand and are capable of assuming the risks involved in the partnership’s investment program.
The General Partner may suspend or limit the right of all Limited Partners to make withdrawals under certain circumstances as laid out in the Private Placement Memorandum below.
Important Definitions & Disclosures
The VanEck Bitcoin Tracker Fund, LP is not an investment company registered under the Investment Company Act of 1940, and therefore is not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. The Fund is not a commodity pool for purposes of the Commodity Exchange Act. Before making an investment decision, you should carefully consider the risk factors and other information included in the Private Placement Memorandum.
The Fund is available to Accredited Investors Only. Please carefully read the Private Placement Memorandum before investing. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. The Fund has no operating history and involves a significant degree of risk. There is no guarantee the Fund will achieve its investment objective and investors may lose their entire investment. The Fund is not suitable for all investors. Past performance is not a guarantee of future results.
An investment in the Fund is subject to risks which include among others, bitcoin and bitcoin network, volatility of digital assets trading prices, lack of governance of many digital asset networks, blockchain technology, cybersecurity risk, loss or destruction of a private key, forks in the bitcoin network, dependence on the internet, market risk, investment concentration, liquidity, third party bankruptcy, employee or third party service provider misconduct, lack of regulation for digital assets and any future regulatory developments could affect the viability and expansion of the use of the Fund, lack of regulatory protections, and tax risks. Please see the Private Placement Memorandum for additional information.
The information herein represents the opinion of the author(s), an employee of the advisor, but not necessarily those of VanEck. The securities/ financial instruments discussed in this material may not be appropriate for all investors. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security/financial instrument, or to participate in any trading strategy.
Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data.
Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not generally backed or supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. The value of cryptocurrency may be derived from the continued willingness of market participants to exchange fiat currency for cryptocurrency, which may result in the potential for permanent and total loss of value of a particular cryptocurrency should the market for that cryptocurrency disappear. Cryptocurrencies are not covered by either FDIC or SIPC insurance.
Investing in cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a cryptocurrency as payment today will continue to do so in the future.
The features, functions, characteristics, operation, use and other properties of the specific cryptocurrency may be complex, technical, or difficult to understand or evaluate. The cryptocurrency may be vulnerable to attacks on the security, integrity or operation, including attacks using computing power sufficient to overwhelm the normal operation of the cryptocurrency’s blockchain or other underlying technology. Some cryptocurrency transactions will be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that a transaction may have been initiated.
- Investors must have the financial ability, sophistication and willingness to bear the risks of an investment and a potential total loss of their entire investment in cryptocurrency.
- An investment in cryptocurrency is not suitable or desirable for all investors.
- Cryptocurrency has limited operating history or performance.
- Fees and expenses associated with a cryptocurrency investment may be substantial.
The Partnership will be treated as a partnership for U.S. federal income tax purposes and not as an association or “publicly-traded partnership” taxable as a corporation. Each investor should consult before investing, with their advisors on the tax, accounting, and legal implications of investing based on your particular circumstances.
The General Partner and its principals may conduct any other business, including any business within the cryptocurrency or securities industry, whether or not such business is in competition with or adverse to the Partnership. Without limiting the generality of the foregoing, the General Partner and its principals (through an affiliated entity) may act as the investment adviser or investment manager for others, may manage funds or capital for others, may have, make and maintain investments in its own name or through other entities, and may serve as officer, director, consultant, partner or stockholder of one or more investment funds, partnerships, securities firms or advisory firms. Certain inherent conflicts of interest may arise from the fact that the General Partner, the principals of the General Partner and their affiliates may carry on substantial investment activities for other client accounts, including discretionary accounts and other investment vehicles.
There may be risks posed by the lack of regulation for cryptocurrencies and any future regulatory developments could affect the viability and expansion of the use of cryptocurrencies. Investors should conduct extensive research before investing in cryptocurrencies. Past performance is not a guarantee of future results.
Information provided by Van Eck is not intended to be, nor should it be construed as financial, tax or legal advice. It is not a recommendation to buy or sell an interest in cryptocurrencies.