bitHedge Fund I is a closed-end private fund that pairs uncapped Bitcoin upside with principal protection backed by first-position liens on commercial real estate. For accredited investors.
Request InformationEvery existing solution either caps the upside, dilutes exposure through capital splits, or relies on counterparty paper—swaps, derivatives, structured notes. bitHedge solves this with real property collateral. 100% of capital goes to Bitcoin. The floor is backed by hard assets, not financial engineering.
You own unencumbered commercial real estate. To get Bitcoin exposure, you'd have to sell property, take on debt, or give up appreciation. bitHedge gives you a path to funded Bitcoin exposure—in exchange for collateral capacity you already have but aren't using.
Capital provides liquidity. Real estate provides the floor. bitHedge structures the swap, manages the collateral, and earns carry on the value created.
Class A investors commit capital. In parallel, Class B real estate partners pledge first-position liens on unencumbered commercial property. All assets are held at a qualified institutional custodian.
One coordinated event: Bitcoin is purchased, RE liens are recorded simultaneously, and the protected floor is set. Every dollar is backed by real estate from the moment of closing. The fund closes to new capital.
The fund holds Bitcoin for 3 years—or exits early if NAV reaches 2x the protected floor. At reconciliation, gains are distributed through a single 50/40/10 waterfall: 50% to Class A, 40% to Class B, 10% GP carry. If NAV is below the floor, the enforcement waterfall activates to make capital investors whole.
Unlike products that split capital between Bitcoin and a protection asset, bitHedge sources protection from a separate collateral layer entirely. Capital is nearly 100% deployed to Bitcoin at closing; only fund formation costs are withheld.
Protection is not manufactured by buying insurance. It is sourced from parties who actively want the risk they are absorbing. Both sides pull toward the deal.
Hard asset collateral, legally perfected, from owners who carry no debt on their properties. Collateral is underwritten to a maximum 50% LTV, with a target of approximately 25%—providing a 50% to 75% margin of safety.
No interim triggers, no periodic rebalancing, no complex waterfall math during the hold. One reconciliation event at 3 years (or early at 2x). One waterfall. Investors can underwrite it in a single meeting.
Bitcoin is held at a qualified institutional custodian. It is not lent, pledged, or used as collateral for anything else.
Reg D 506(c) + 3(c)(1) structure. Well-understood by institutional investors and their counsel. No novel legal theory required.
The fund's compliance and operational infrastructure is designed to meet the expectations of sophisticated investors and their counsel.
Institutional-grade custody for all fund assets. Bitcoin and capital are held securely at a qualified institutional custodian meeting regulatory requirements.
Third-party onboarding, KYC/AML verification, and comprehensive investor reporting handled by an independent fund administrator.
Crypto-specialized CPA firm provides independent verification and annual audit of all fund operations and holdings.
Securities, fund formation, and real estate counsel engaged to ensure full compliance and proper structuring.
506(c) verified accreditation with no exceptions. Every investor must meet accreditation standards before participation.
UCC-1 filings, deeds of trust, and third-party valuations ensure all real estate collateral is properly secured and legally perfected.
$20M (or BTC equivalent)
$5M per investor, or BTC equivalent
1.0% annually, charged against Class A NAV
10% of fund net profits—GP's allocation in the 50/40/10 waterfall at reconciliation
Maximum 50% LTV; target approximately 25% LTV
Management fee (1%) accrues daily and is paid quarterly from fund assets by liquidating a small portion of Bitcoin holdings. Carried interest (10%) is allocated on NAV gains at reconciliation via the fund's 50/40/10 waterfall—the GP earns nothing if Bitcoin moves sideways or declines. No hurdle rate. All terms are subject to the final Private Placement Memorandum.
This is not a guarantee of returns or an offer to sell. See important disclaimers below.