Crypto

Enhanced Crypto Fund

Annualized return3

Liquidity3

Quarterly

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Status

Closed

Recently funded

Accepting $15,000 - $500,000 investments

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Accepting $15,000 - $500,000 investments

Important notes

• The Enhanced Crypto Fund will accept investment requests between the 1st and the 15th of each month. Successful investment requests during each calendar month will go into the Fund at the end of that calendar month and your investment will be marked active approximately 5 business days after month end.

• Investing in crypto-based assets is highly speculative and currently the market is largely unregulated.

• Please consider the heightened risks when investing and the potential that outcomes may vary greatly from expectations, and may include the potential loss of principal.

Overview

Invest in an IRA eligible cryptocurrency Fund providing investors an easy and cost effective exposure to the largest and most prominent cryptocurrencies and blockchains without the guesswork. The Fund utilizes an enhanced quantitative, qualitative and rules based approach to invest in five-to-ten of the largest cryptocurrencies.

Key Takeaways

  • The Fund provides investors an easy and cost-effective way to gain exposure to the largest and most prominent cryptocurrencies and blockchains without the guesswork.
  • The Fund is currently invested in Bitcoin, Ethereum, Cardano, Solana and Polkadot and utilizes quantitative and rules-based controls to ensure no single cryptocurrency dominates the portfolio, allowing for balanced inclusion of both established and developing key cryptos.
  • The Fund can be accessed via a Yieldstreet IRA, making it one of the first IRA eligible digital asset investment vehicles available to investors, providing numerous potential tax efficiencies to long-term investors.

Premise

Potential benefits of investing in crypto

  • Yieldstreet believes that crypto investments have significant growth potential, which may provide investors with increased returns and greater profit potential compared to traditional investments.
  • Investing in cryptocurrencies gives investors the option to either invest in the short term or the long term, with varying risk and return.
  • The decentralized nature of cryptocurrencies, and the fact that crypto is not tied to any financial institutions can potentially help to offset the economic effects from factors such as fiscal policy or recessions.
  • Transaction speed for cryptocurrency is faster than traditional banking methods, and transactions can also be done for a fraction of the cost, which may ultimately boost the demand for digital assets in the long run as they can provide a better user experience.
  • Compared to the traditional financial markets, the crypto market operates around the clock, throughout the year.

Yieldstreet believes that blockchain technology and cryptocurrencies are set to change the world

  • Yieldstreet believes that digital assets and blockchain technologies are the underpinnings of a new financial infrastructure, similar to how the internet was the underpinning of a new information infrastructure.
  • The overall crypto market capitalization was ~$1.7T as of 2/3/22 (Statista.com).
  • Almost 76% of executives surveyed in 2021 said they expect digital assets will be a solid alternative to fiat currencies for global finance in the next 5–10 years (Deloitte’s 2021 Global Blockchain Development Survey).
  • Blockchain technology offers the ability to improve the business processes that occur between companies, radically lowering the “cost of trust.”

Strong historical returns generated by crypto

  • Although past performance is not indicative of future performance, 2021 was a historical year for cryptocurrencies with many digital assets hitting all-time highs in price.
  • According to CNBC, Bitcoin, which is the world’s largest cryptocurrency by market cap, increased in value by ~65% between January and December 2021.
  • Analysis completed by CNBC shows the performance of select cryptos in 2021, linked here.

Exposure to key protocols that Yieldstreet believes are forming the base layer of the crypto economy

  • The Fund will invest among the largest cryptos by market capitalization, which has the potential to reduce the risk to the Fund from any single of these protocols failing. A single crypto will not make up more than 25% of the Fund and the Fund intends to rebalance its portfolio on a monthly basis.
  • At launch, the Fund expects to invest in Bitcoin, Ethereum, Cardano, Solana and Polkadot.

Enhanced approach to a select group of the largest cryptos by market capitalization

This Fund offers a rules-based and balanced approach to the largest cryptos by market capitalization with policies in place to help ensure that no single crypto has an outsized impact on the portfolio. This approach allows for inclusion of the larger altcoins and emerging protocols with growing significance.

For a crypto to be included within the Fund it must:

  • Have a market capitalization within the top 10 crypto by market capitalization,
  • Be greater than one year old,
  • Be permissionless,
  • Employ a cryptographically secure consensus mechanism,
  • Be eligible to be custodied by a custodian that has the necessary SOC 1 Type 2 compliance required to produce GAAP compliant audited financial statements,
  • Be traded on market venues selected by the Sub-Advisor,
  • Have no known security vulnerability, and
  • Not be subject to any material pending litigation, or regulatory action.

For a crypto to be included within the Fund it must not:

  • Preserve anonymity by obscuring the flow of money across such Digital Asset’s blockchain networks, i.e., the Fund will not invest in privacy coins.
  • Originate from an Internet meme and have no clear objective or substance, i.e., the Fund will not invest in meme coins, for example Dogecoin.
  • Be designed to have a relatively stable price, typically through being pegged to a commodity or currency (e.g., the U.S. dollar) or having its supply regulated by an algorithm, i.e., the Fund will not invest in stablecoins.

Sub-advised by the experts at Osprey Funds

  • Osprey Funds, one of only three pure-play digital asset investment managers with publicly-traded vehicles in the U.S., is the sub-advisor for the Fund, and has significant credibility in delivering crypto products, with four individual coin trusts launched to date.
  • Osprey Funds was formed as the digital asset sub-division of REX Shares, a U.S.- based provider of Exchange Traded Products. *Osprey Funds is run by experts who have invested in crypto since 2013 and launched over 100 exchange-traded products.
  • Osprey raised over $100M in 2021 with their crypto products.
  • Members of the management team built their experience at firms including Barclays, Credit Suisse, Citi, Global X Funds, J.P. Morgan, PIMCO, and more.

Rebalanced on a monthly basis to ensure no single crypto dominates the portfolio

  • Osprey intends to rebalance the Fund’s portfolio monthly to satisfy the Fund’s investment criteria, taking into account trading costs, changes to the list of “top 10” Digital Assets, hard forks, market events, and other similar events and circumstances.
  • The portfolio is intended to be rebalanced every month based on the modified market cap methodology (25% cap per crypto).
  • While it is initially anticipated that the Fund will include five Digital Assets in its portfolio, Osprey may expand the Fund’s portfolio to hold a maximum of ten Digital Assets if it determines that this will improve expected returns. Such additional Digital Assets will be chosen by Osprey using the same criteria described above.

Low-cost Fund

  • The Fund allows investors access to Digital Assets without requiring investors to manage wallets or keys.
  • The Fund is being offered to investors with a lower management fee than many others in the industry. Yieldstreet will charge an annualized management fee of 1.5%, whereas others typically charge upwards of 2% for managing similar products.

Essentials

Please refer to the Private Placement Memorandum in the Documents section for more details about this offering.

Cash Flows

How do I get paid?

  • Investments in crypto assets do not derive current income.
  • As the value of the underlying cryptos in the Fund increase/decrease, the value of your investment will increase/decrease proportionately.
  • Investment valuations will be updated on a monthly basis and be reflected within investor portfolios.
  • In order to realize any gains/losses investors must submit a withdrawal request.

Liquidity

How do I redeem my capital?

  • An investor’s initial investment is subject to a one year lock up period where no withdrawals can occur.
  • Yieldstreet will accept withdrawal requests starting on the first day of each quarter up until 65 days prior to that quarter’s end. Withdrawal requests can be made for any amount.
  • Withdrawal requests will be paid within 30 days after the end of the quarter in which the withdrawal was requested. For example if an investor requested a withdrawal on 4/15/22 then the investor would receive funds sometime between 7/1/22 and 7/31/22.

Accessibility

Who can invest in the Fund and what is the subscription process?

  • Available to accredited investors, including Yieldstreet IRA accounts
  • The Fund will accept investment requests between the 1st through the 15th of each calendar month. Successful investments during this period will go active into the Fund on the last business day.
  • For example, if an investor submits a successful investment request on 7/5/22, the investor will gain exposure to the Fund on 7/31/22.

Risks

What are the risks involved in crypto investing?

  • Investing in crypto-based assets is highly speculative and currently the market is largely unregulated.
  • Please consider the heightened risks when investing and the potential that outcomes may vary greatly from expectations, and may include the potential loss of principal.

Slide 1 of 3
  • Returns & Management fees

    Annual management fee

    1.5%

    Target annual net return

    25%+

  • Schedule

    Liquidity

    Quarterly

  • Structure

    Tax document

    K-1

    Offering structure

    SPV

    Ann'l flat expense

    0.25%

Docs

This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS CRPT OSP I LLC ("Fund"). The Offering is made only by means of the Private Placement Memorandum dated April 26, 2022 relating to the Offering (the "PPM"). The information on this offering page is a summary of the Offering, does not purport to be complete and should not be considered a part of the PPM, or as incorporated in the PPM by reference or as forming the basis of the Offering. No person has been authorized to give any information or to make any representations other than those contained in the PPM or in any marketing or sales literature issued by the Fund or Yieldstreet Management, LLC, as adviser thereto, and referred to in the PPM, and, if given or made, such information or representations must not be relied upon. All investors must read the PPM in its entirety prior to investing in the securities.

Target returns are based on an analysis performed by Yieldstreet of the historical performance of the assets that comprise or are anticipated to comprise the investments of the fund, utilizing the last calendar year of performance data. There is no guarantee that targeted returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.