Blockchain Funds Anyone Can Invest In
Investing in blockchain funds can be passive strategy to getting a piece of the blockchain upside!
Tokenized funds are more accessible to investors, as they simply pay dividends to token holders, without the complicated legal and banking process needed to invest.
This means every day investors can get into high risk – high return investment funds that are traditionally only available to accredited investors or institutions.
There are a few different types of blockchain funds out there, with different risk profiles, and means of participating. Here are some of the popular ones:
Tokenized Venture Capital Funds
Pioneer of the tokenized fund model and first VC fund dedicated to blockchain only investments.
The fund follows the usual VC model, which means they stay in their investments until exit, 5-10 years down the line.
Tokens represent proof of membership in the fund, which entitles the token holder to a portion of the distributions.
In practice, membership and therefore distributions are restricted to accredited investors, but one may trade the token value on the open market.
NAV (Net Asset Value) per token is announced quarterly.
Science Inc, is an incubator and venture builder based in LA, which is doing a tokenized fund for the blockchain ventures.
Science takes equity and tokens for projects they back.
Tokens are immediately distributed to SCI holders.
Cash exits are distributed to token holders by buying back tokens and burning them.
See our more in depth ICO review of Science.
ICO Trader Funds
TaaS is a tokenized crypto investment fund.
Their strategies include ICO investment, trading, and medium-short term alt investing.
Dividends are paid to token holders quarterly.
Astronaut is a tokenized ICO fund. Instead of spending all your time researching ICOs, you purchase ASTRO and receive dividends from ICO investments quarterly!
The fund is managed by experienced small cap stock traders who have shifted to the cryptocurrency space.
Alternative Financing Funds
Hero token is a fund that provides microloans to customers of PawnHero in the Philippines.
Monthly interest on loans is 3%, half of which is returned to token holders as a dividend.
Populous is a protocol for providing invoice advances to businesses.
Business can get a 1 month loan for 95% of the invoice amount, 3% of the invoice amount goes to the loan provider.
Some have noted that tokenized funds that return quarterly dividends have predictable dips and peaks. The difference sometimes outperforms the dividends payouts!