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Wilshire Phoenix teams with Coinbase on soon to launch institutional crypto fund

Wednesday, October 31, 2018
Opalesque Industry Update - Wilshire Phoenix, a New York-based investment firm that provides structuring, advisory and asset management services, has partnered with Coinbase Custody, the most secure crypto storage solution created by the world's leading platform for cryptocurrencies.

Wilshire Phoenix expects to launch a fund in 2018 that is organized as a statutory trust and which will be capped at $500MM. The fund will provide exposure to Bitcoin, but, unlike other products that simply hold Bitcoin (or oven multiple cryptocurrencies, often referred to as an index), employs a novel approach to mitigate some of the risks typically involved from the sudden and substantial price movements of Bitcoin. An investment in the fund may make it easier for investors and financial institutions to gain exposure to Bitcoin.

In addition, investors together with financial institutions may find it difficult to purchase and hold Bitcoin due to pricing models around Generally Accepted Accounting Principles (U.S GAAP). We trust that our system, which is patent-pending, may also solve this important issue. The fund will not use derivatives or any form of leverage to achieve its objective. This will limit counterparty exposure and the often unnecessary additional fees that are normally associated with these types of financial products or methods.

While the fund is not intended to replicate a direct investment in Bitcoin. It will seek to provide investors and financial institutions with the ability to gain exposure to Bitcoin while mitigating some of the risks involved from sudden price movements of Bitcoin.

"Coinbase Custody provides Wilshire Phoenix a best in class platform on which to securely store digital assets. They are steadfast in their commitment to implementing and executing solutions for institutional clients as opposed to merely talking about their future plans to do so. We are excited to have Coinbase in our corner and we look forward to our continued partnership in the months and years to come," said Bill Herrmann, Founder & CEO of Wilshire Phoenix.

"We're proud to partner with Wilshire Phoenix to provide institutional-grade, compliant digital-asset custody for its new fund," offered Sam McIngvale, General Manager of Coinbase Custody Trust. "As a regulated Qualified Custodian and fiduciary, Coinbase Custody will not only offer Wilshire Phoenix clients' secure storage for digital assets, but also the ability to perform GAAP-compliant audits whenever the need arises."

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