Frequently Asked Questions

In essence, DIgital Asset funds are registered investment funds and private securities that invest in cryptocurrencies like Bitcoin, or in companies operating in the blockchain or cryptocurrency space. Digital Asset funds can take many forms including hedge funds, venture capital funds, private equity, index funds, and ETFs.

The most common type of Digital Asset or crypto funds are venture capital funds, followed closely by crypto hedge funds. There are also a number of private equity funds invested in blockchain/crypto, a few large crypto index funds, and expectations for various crypto ETFs. Large instiutional players are also working on a spot Bitcoin ETF that tracks the performance of Bitcoin - similar to the S&P 500. 

While many crypto funds boast impressive returns, investing in crypto funds is risky. The volatility of crypto fund returns is typically much higher than that of stock market ETFs or mutual funds. In addition, many crypto funds have gone out of business over the last few years and a few have been involved in fraud - think FTX. That said, there are many well run crypto funds with great track records. One should conduct extensive due diligence and. consult a professional before investing in crypto funds (just as you would do before investing in any private security/ fund).

Over the last 10 years, gold’s return on investment (ROI) in USD was -0.25%, the S&P 500 +277%. Both these benchmarks pale in comparison to Bitcoin — 437,171% since 2011. However, cryptocurrencies, and crypto funds in particular, tend to have much more volatile returns than most other asset classes. That is why the foucs of The Accelerator Fund is mining which is much more stable than trading Bitcoin or other token direclty. 

FutureFi Capital Management targets a 25% annual return with expectations of significant upside. Since energy costs for Bitcoin mining is kept to a minimum and in some cases near zero, there is greater potential than other funds with similar strategies. 

$100,000 or less with approval from the General Partners.

Yes.

In the U.S, the definition of an accredited investor is put forth by SEC in Rule 501 of Regulation D. To be an accredited investor, a person must have an annual income exceeding $200,000 ($300,000 for joint income) for the last two years with the expectation of earning the same or a higher income in the current year. An individual must have earned income above the thresholds either alone or with a spouse over the last two years. The income test cannot be satisfied by showing one year of an individual's income and the next two years of joint income with a spouse. A person is also considered an accredited investor if they have a net worth exceeding $1 million, either individually or jointly with their spouse. Also, financial professional holding a FINRA Series 7, 62, or 65 can also act as an accredited investor.