During 2020, Wave Financial’s bitcoin fund yielded 145.84%, net of fees but including dividends.
This is the Wave BTC Income & Growth Digital Fund Ltd (WBIG) which is celebrating its first anniversary these days.
In reality, over the course of the 2020 calendar year, the price of bitcoin has risen by around 300%, but this only applies as a comparison to those who bought physical BTC on January 1st and resold them on December 31st, as the mere possession of bitcoin does not entitle you to receive any dividend or yield. Instead, WBIG is a fund that hedges against the high volatility of the BTC price, generating instead stable returns precisely by converting volatility into returns.
Bitcoin fund: about Wave
Wave Financial Group (Wave) is the parent company of Wave Financial, and was founded in 2018. Its WBIG was launched last year as a crypto derivatives fund designed to take advantage of bitcoin’s high volatility to provide a dividend yield using a covered call strategy to capture most of BTC’s upside potential.
This fund recently completed its first full year of operations, paying a dividend of 1.5% of NAV per month for the full 12 months, while providing a near 100% upside yield.
WBIG’s return from November 2019 to December 2020 was +132.95%, while over the same period the return of the S&P 500 Index was +21.97%, and that of the FTSE 100 as low as -9.09%.
2020 has seen the digital asset sector begin to re-emerge after 2 years of weakness, and with some well-known institutions turning their attention to these new assets, the underlying technology and the assets themselves have become more mature and ready for mainstream adoption.
Wave co-founder and chairman Benjamin Tsai said:
“We are pleased that our Bitcoin growth and income fund has achieved what we set it out to do in its first year, achieving a stable return from what is otherwise perceived as a volatile asset. The income component is particularly compelling in the current low yield environment”.
Wave’s international president, Matteo Dante Perruccio, added:
“WBIG is a fund that is specifically designed to provide investors with significant exposure to Bitcoin, whilst offsetting volatility from such exposure and with the aim of generating a stable return. WBIG strives to smooth out the volatile Bitcoin return profile by converting that volatility into high yield”.