Investing in
Cryptocurrency is difficult

Deciding to add cryptocurrency to your investment portfolio is the easy part. What gets difficult very quickly for inexperienced cryptocurrency investors is deciding what cryptocurrency investments to select, as well as where to buy and how to secure and protect your cryptocurrency investments.

Directly purchasing cryptocurrency investments burdens investors with management of digital wallets and associated password keys, ‘lose your keys, lose your crypto’ or exchange custody risk. We take care of this for you with our Digital Asset Fund, an Australian domiciled wholesale unit trust, in which you can purchase units, the same way you access traditional investment assets. This simplifies your administration, auditing and taxation.

Avoid opaque and complex tax reporting requirements

Navigating the tax implications of cryptocurrency investments can be intricate and time-consuming. We handle the complexities of taxation and associated paperwork so you get exposure to a diversified portfolio of crypto currency without the administration and tax compliance burden.

Why you should add Cryptocurrency to a traditional investment portfolio

Cryptocurrency has low correlation to other asset classes, making it an important growth component of a well balanced portfolio. The CFA Institute has published papers espousing the benefits of small allocations of crypto to balanced portfolios, the result being greatly enhanced returns and little difference in either volatillity or maximum drawdowns.

The below chart shows the stark results, a 5% allocation to a 60/40 portfolio (equity / bonds) more than double cumulative returns from 75% to 156%, while portfolio volatility rises a relatively immaterial amount from 10.19% to 11.18%. The question therefore should not be whether to invest in crypto but how much to allocate.

Traditional portfolio with and without cryptocurrency allocation

Past performance is not indicative of future performance.

Bitcoin has performed well in the past, but emerging protocols show more promise and utility

The digital asset revolution has only just begun. The cryptocurrency space has evolved from a whitepaper 10 years ago to a 2.5 trillion dollar asset class. Whilst Bitcoin has performed well in the past to become the dominant cryptocurrency, there are fast-emerging protocols that are showing more utility and promise.

The Digital Asset Fund aims to make the most of this by outperforming Bitcoin over the long-term by identifying and investing in these emerging cryptocurrency assets.

Why invest in Merkle Tree Capital’s Digital Asset Fund?

An easy way to invest in crypto assets

Our Digital Asset Fund provides an easy way for investors to securely invest in fast-growing cryptocurrencies and emerging blockchain technologies.

Professionally managed

Our investment team combines traditional investment management methodologies and the expertise of our passionate crypto specialists to extract alpha that will deliver superior investment returns in this rapidly evolving landscape.

Secure custody & insured

Fund assets are securely held in Coinbase’s market leading institutional grade custody services and Insured by Lloyds of London, the world’s leading insurance market providing specialist.

Superior to ETFs

ETFs serve their purpose, but they can miss emerging cryptocurrency opportunities and are exposed to single asset risk. Our unit trust structure provides complete transparency and allows our experienced blockchain technologists to generate ‘alpha’ that passive ETF’s miss.

Strong relationship with our investors

We want to share our passion for the cryptocurrency space with our investors and provide them with an education that leaves them best equipped to make the most out of investing in cryptocurrency.

Merkle-Shield

Who is Merkle Tree Capital

Co-founders Ryan McMillin and Dean Serroni have been friends for over 25 years. From the end of high school and throughout their university days, Dean followed his passion for information technology while Ryan extensively studied finance.

Dean launched a social media app which ended up exposing him to the cryptocurrency world. Eventually, both he and Ryan found themselves engaging in robust debate on the viability of bitcoin. Ryan’s initially superficial analysis, which is still common among traditional finance proponents, centered on what crypto isn’t (centralised, regulated, tangible) rather than what it is (decentralised, immutable, programmable).

While Dean’s practical knowledge of cryptocurrency trading increased, Ryan’s stance moderated. As he focused on the fact that a portfolio’s risk adjusted returns are enhanced with exposure to Bitcoin and other cryptocurrencies.

Discussions between Dean and Ryan quickly evolved from the practical application of crypto in the Decentralised Finance (DeFi) and Non-Fungible Token (NFT) spaces to investing together. The duo ultimately decided to leverage their complementary expertise, including Ryan’s investment structuring experience and Dean’s extensive knowledge of the crypto landscape, to create an investment vehicle for sophisticated investors that were seeking a secure, actively managed means to access the nascent and rapidly evolving asset class.

Merkle Tree Capital was born.

Our team

Ryan McMillin

e: [email protected]
m: 0455 319 994

Ryan McMillin

B.Comm, CPA, Grad Dip Applied Finance & Investment

Ryan is an investment professional with 20 years of experience in asset management split equally between Australia and the U.K.. Ryan is a specialist in product development, strategy and governance having designed and successfully launched over 100 funds in 10 jurisdictions which have raised billions and won multiple awards. Ryan is also a qualified accountant with experience in fund operations, risk and compliance.

Ryan has worked at a number of asset management firms including at BlackRock, GAM, Coutts & Co., AMP Capital and Sarasin & Partners, winning awards for product design and development such as ‘best fund range in Europe’ two years running from Funds Europe.

Dean Serroni

e: [email protected]
m: 0438 466 164

Dean Serroni

B. Computing, PMP

Dean is a technology leader with over 20 years of experience in technology transformations, consulting leadership and entrepreneurship. Dean spent the first part of his career delivering technology implementations, primarily in the financial services sector, before taking on leadership roles at a range of consulting firms.

While building and successfully exiting a tech startup over the past decade, Dean became exposed to the cryptocurrency ecosystem and developed his skills as both an investor and industry contributor. Through his involvement in cryptocurrency Dean established a passion for this nascent space and felt compelled to become more deeply involved.

Gabriel Carey
Gabriel Carey

Director

20 years experience in product and wealth management. Founder/CEO Cadre Capital

Peter Cameron
Peter Cameron

Board Advisor

Tech CEO, board chairman, venture partner, Investing in Crypto since 2015

Andrew Nicol
Andrew Nicol

Investment Partner

20 years experience in funds management, research and valuations.

Chris Judd
Chris Judd

Investment Partner

Founder of Chris Judd Invest, investor in listed equities, crypto and commodity markets.

boutique capital

Trustee and Administration, experienced in risk management, funds management and trading

Tim Baker
Tim Baker

Trustee & Administrator

Justin Smith
Justin Smith

Head of Compliance

Linda Carroll
Linda Carroll

Head of Operations

Sarah Poulos
Sarah Poulos

Head of Fund Accounting

Insights

FAQ

Who is Merkle Tree Capital?

Co-founders Ryan McMillin and Dean Serroni have been friends for over 25 years. From the end of high school and throughout their university days, Dean followed his passion for information technology while Ryan extensively studied finance.

What is the Digital Asset Fund?

Our Digital Asset Fund provides an easy way for investors to securely invest in fast-growing cryptocurrencies and emerging blockchain technologies.

How do I invest in the Digital Asset Fund?

Sophisticated investors can invest into the MTC Digital Asset Fund via the following link: www.registrydirect.com.au/offer/mtc-digital-asset-fund

What is a sophisticated investor?

A person with a certificate from a qualified accountant certifying they have a prescribed net asset or gross income level. This gives them an exemption under the Corporations Act 2001. That means they can buy financial products without a regulated disclosure document such as a prospectus or product disclosure statement.

What is the minimum investment I can make into the Digital Asset Fund?

AUD $50,000

What are the fees to invest in the Digital Asset Fund?

The Manager will charge a Management Fee of 2% p.a. (plus GST) of the Net Asset Value. The Performance Fee is equal to 20% of outperformance after Management Fees and other costs of running the Fund (plus GST) have been deducted, above the Bitcoing S&P Index Benchmark Return. A performance fee will only be charged where absolute performance for the period is positive, and only on the outperformance that is positive. The performance fee is also subject to a high-water mark. The high watermark is the highest return the Fund has achieved in comparison to the benchmark since the Fund was launched. A performance fee is only charged when the Fund’s return in comparison to the benchmark reaches a new high. When this occurs, the high watermark is reset at this level.

Can SMSF invest in the Digital Asset Fund?

Yes. Self Managed Superannuation Funds can invest in the fund. However, they must meet the sophisticated investor criteria.

Does the fund hold Ethereum?

Yes. The fund has an allocation to Ethereum and several other of the leading crypto assets by market capitalisation.

What is the difference between investing in the fund and just buying Bitcoin myself?

The MTC Digital Asset Fund seeks to outperform Bitcoin by investing in crypto assets including established Blockchains, Smart Contract Platforms, Decentralised Finance (DeFi) protocols as well as other emerging sub-sectors that present an opportunity for superior returns. Investors in The Fund will also have the benefit of

  • Secure institutional-grade custody of crypto assets
  • Portfolio management and ongoing asset selection
  • Avoidance of complex global trading platforms
  • Avoidance of complex wallet and key management
  • Education via regular market updates.
Do I need to worry about losing my wallet key?

No. We manage the complications of managing global exchanges and wallets on behalf of our investors. We have partnered with Coinbase to provide industry leading asset custody.

Are my cryptocurrency assets in this fund safe?

Yes. We have partnered with Coinbase to provide industry leading asset custody. Coinbase has been storing funds on behalf of its customers since 2012 and has never lost customer funds.​ Coinbase provides $320M of Commercial Crime Insurance underwritten by a global syndicate of insurance providers led by Lloyds of London

Do you day trade cryptocurrency investments within the fund?

The Fund has adopted a ‘buy and hold’ strategy and will not engage in day trading, derivatives, leverage, or short selling.

How long should I invest my money in the fund?

Crytpocurrency is a volatile asset class, as such we suggest a minimum holding period of 5 years.

Get in contact with us

If you would like to learn more about the fund or to have a general chat about crypto please get in touch, we would love to connect.

[email protected]

10-20 Gwynne Street, Cremorne, 3121

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