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Tokenized Asset Manager Superstate Launches New Fund to Profit from Bitcoin and Ether ‘Carry Trade’
Blockchain-based wealth management firm Superstate has introduced a new tokenized fund that will provide returns based on the popular “cash and carry” investment strategy.
THE USCC token, an ERC-20 token on the Ethereum blockchain, will generate returns for holders by purchasing spot bitcoin {{BTC}} and ether {{ETH}} and taking equal-sized short positions of, or selling, BTC and ETH futures. The trade offers a delta-neutral position, profiting from the market without taking directional bets on price movements. For example, several hedge funds pursue this strategy by purchasing spot bitcoin exchange-traded fund (ETF) shares and selling bitcoin derivatives on the Chicago Mercantile Exchange (CME).
Putting investment strategies like carry trades into a digital token is a new form of crypto’s hot tokenization trend, putting traditional investments like bonds, funds, and credit on the blockchain. Ethena Labs’ USDE “synthetic dollar” token, which has attracted over $3 billion in deposits in the first half of the year, also provides yield to holders via carry trades.
However, there are several differences between Superstate’s product structure and that of Ethena, Superstate CEO Robert Leshner told CoinDesk in an interview.
Ethena’s token generates income from perpetual futures funding rates and passes the income on to those who lock or stake the token. Meanwhile, Superstate sells futures with certain expiration dates that provide a more predictable return and distributes the return to all token holders, Leshner said. USCC also targets qualified and licensed investors to comply with U.S. securities laws and operates as a series of Delaware Trusts, an entity remote from Superstate’s bankruptcy, he added.
“[USCC] It’s a highly regulated product, with lower risks but offering lower returns,” Leshner noted.
To execute futures trades for the fund, Superstate has partnered with prime brokerage firms, while spot assets are held with custodial partner Anchorage Digital.
The wealth manager’s new offering comes after the launch first tokenized fundthat holds short-term U.S. Treasury bonds. The predecessor fund has raised nearly $80 million in assets since its debut earlier this year, according to rwa.xyz data.