Asia’s Grayscale? Two new bitcoin trust products get launched, with Coinbase as custodian

Quick Take

  • Asset management firm IDEG Investment has launched two new bitcoin trust products
  • The products – Asia Bitcoin Trust I and Atlas Mining Trust I – claim to have a total size of $200 million 
  • A Coinbase spokesperson separately confirmed to The Block that Coinbase Custody is the custodian for both the products 

Asset management firm IDEG Investment has launched two new bitcoin trust products - Asia Bitcoin Trust I and Atlas Mining Trust I - claiming to have a total size of $200 million for both the products.

Announcing the news on Sunday, Hong Kong-based IDEG said unlike passively-managed products like Grayscale Bitcoin Trust (GBTC), Asia Bitcoin Trust I is an actively-managed product. IDEG will apply “hedging and arbitrage strategies” to seek returns for investors as well as to “effectively control the risk of drawdowns," said Kevin Yang, CEO of IDEG.

The other product, Atlas Mining Trust I, is an investment vehicle that allows investors to participate and share profits from bitcoin mining activities. IDEG said mining of bitcoin offers market participants $4 billion to $8 billion in annualized revenues.

"The mining business is quickly evolving, with more and more institutionalized miners stepping in. Individual miners are dropping out because institutional miners like us can improve in almost every aspect, including capex [capital expenditure], opex [operating expenses], operation, and risk management. That's why we have a much higher return ratio than other miners," said Raymond Yuan, founder of IDEG.

Both the trust products are targeted at institutional investors. It is not clear whether the claimed $200 million funds have been already committed by investors. Yang declined to comment further to The Block.

But he confirmed that IDEG founder Yuan is also the founder of Fundamental Labs, a $500 million-under-management blockchain fund that has backed Binance, Coinbase and Canaan Creative, among others.

Coinbase as custodian

Coinbase Custody, one of the world's largest cryptocurrency custodian holding “over 900,000 bitcoins,” is the custodian for both trust products. A Coinbase spokesperson separately confirmed to The Block, saying: “Correct. We are the custodian.”

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