New USCC fund uses 'cash and carry' strategy to profit from Bitcoin and Ethereum price differences, offering low-risk, regulated investment on the Ethereum blockchain.
Superstate, a blockchain-based asset management firm, has recently launched an innovative tokenized fund called the Superstate Crypto Carry Fund (USCC). This fund leverages a sophisticated investment strategy known as 'cash and carry' to generate yield from the price differences between spot and futures markets for Bitcoin and Ethereum.
The 'cash and carry' strategy involves buying an asset in the spot market while simultaneously taking a short position in the futures market for the same asset. In the case of USCC, the fund buys spot Bitcoin and Ethereum and takes short positions in their respective futures markets. This creates a delta-neutral position, meaning the fund is not exposed to the price movements of the underlying assets. Instead, it profits from the price discrepancies between the spot and futures markets.
The USCC fund is represented by an ERC-20 token on the Ethereum blockchain, making it easily accessible and tradable. Investors can also choose to invest in non-tokenized shares if they prefer. The fund aims to provide predictable, risk-adjusted returns with minimal market exposure, making it an attractive option for those looking to invest in the cryptocurrency market without taking on significant risk.
Superstate has partnered with prime brokerage companies for executing futures trades and Anchorage Digital for custodial services. These partnerships ensure that the fund's assets are securely managed and that trades are executed efficiently. This follows Superstate's earlier success with a tokenized fund that invests in short-term U.S. Treasury bills, demonstrating the firm's expertise in managing tokenized assets.
Overall, the Superstate Crypto Carry Fund (USCC) represents a significant step forward in the world of tokenized investments, offering a unique and low-risk way to profit from the cryptocurrency market. By leveraging the 'cash and carry' strategy and providing a range of investor-friendly features, Superstate is paving the way for more sophisticated and accessible investment opportunities in the blockchain space.
