New York-based investment firm Wilshire Phoenix has partnered with Coinbase Custody, the secure digital asset storage company operated by Coinbase, to bring Bitcoin (BTC) exposure to a new $500 million fund.
WP will launch a fund in 2018, which will provide some exposure to Bitcoin. We believe our patent-pending system will make it easier to hold and purchase BTC, especially in partnership w/ @CoinbaseCustody. https://t.co/iw968ai8oP #Coinbase #Bitcoin #Partnership pic.twitter.com/kXLVnYH7VC
— Wilshire Phoenix (@WilshirePhoenix) October 31, 2018
According to the announcement, the fund is designed to provide accredited investors and financial institutions an easy and secure way to gain exposure to Bitcoin.
Instead of using Bitcoin derivatives or building an index, Wilshire Phoenix is developing a patent-pending method to mitigate some of the risk typically involved with the volatile price action of Bitcoin. While the firm has not revealed the details of this model, they do note that it will also provide GAAP compliance, something that is traditionally difficult when it comes to buying and holding digital currencies.
Coinbase Custody provides Wilshire Phoenix a best in class platform on which to securely store digital assets,” said Bill Herrmann, founder and CEO of Wilshire Phoenix. “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.”
The partnership comes just a week after Coinbase Custody obtained a license under New York state banking law. Coinbase Custody now has full approval to offer custody services for Bitcoin, Bitcoin Cash, Ethereum, Ether Classic, Litecoin and perhaps most notably, XRP.
More: Wilshire Phoenix Teams Up with Cryptocurrency Leader Coinbase Custody to Release New Institutional Fund by Year-End
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.