The first week of March 2022 has been one of the most hectic ones for team Belobaba. The conflict in Ukraine and the loom generated by the high chance of rate hike by the Fed is inflicting a downward pressure in the entire financial market and crypto is not immune to that effect.
But the highlight of the week is the news that we are starting official operations in the United States.
We are taking advantage of one of the most advanced legislations in the world in terms of Securities registrations, exceptions, and fundraising.
The fund incorporated in Delaware as a Limited Partnership, will offer the opportunity to US accredited investors to participate as Limited Partners in a Special Purpose Vehicle that will act as feeder to our Master Fund incorporated in Gibraltar and fully regulated by the Gibraltar Financial Services Commission.
As you probably know ,we are a fully native crypto fund that aims to obtain Alpha whilst supporting the development of the crypto and blockchain ecosystem worldwide. And because we follow the old adage “We do what we preach”, we are one of the first tokenized Funds in the world, meaning only holders of fully regulated security tokens can have access to the fund.
The Limited Partnership will target Accredited Investors in the United States following the principles of Regulation D which allows us to operate under an exception to registration.
To give you an idea of the size of the target market, it is estimated that by 2020 in the US there are more that 13 million of Accredited Investors, representing more that 13% of all households in the country controlling a wealth in excess of USD 73 trillion.
The motivation for creating this feeder structure in the US is simple, in one hand we want to be able to have conversations and offer our sophisticated and actively managed crypto portfolio to the above-mentioned investors and at the same time enabling them to participate in our Fund without the risk of getting caught in the complexities and implications of Passive Foreign Investment Company ownership.
This achievement wouldn’t have been possible without the full support of our commercial advisors Dealbox.
The United States already knows how to act fast. We have witnessed how quickly the Bitcoin mining hash rate moved from forbidding and restrictive latitudes to the free lands of Texas and Florida and despite all the friction between both sides of Congress and between the Regulator and the market, I am of the opinion that the US is well positioned to take the leadership in this wonderful industry.
Perfect timing.
I look forward to embracing the wonderful journey in this new chapter with the rest of the staff, our advisors, fund administrators and professional network of friends.
Yours in crypto