Mutual fund wants investors to benefit from the appreciation of whiskey aging.
A mutual fund founded in March with the goal of „tokenizing“ whiskey worth up to US $ 20 million has announced its first successful financing round and the purchase of a first tranche of Kentucky bourbon.
As a reminder: „Tokenization“ means the digital securitization of an asset, which makes it tradable on the one hand in digital form and on the other hand in small parts
As the Wave Financial Group announced on September 11th, their Kentucky Whiskey 2020 Digital Fund has bought 1,000 barrels (kegs) from the Wilderness Trails Distillery.
The aging of the spirits is intended to increase the value for investors over the next five to six years. As previously reported by Bitcoin Storm software, the value is estimated to increase from $ 1,000 per barrel to $ 4,000 per barrel over this period.
It is often difficult for private investors to invest in tangible capital goods like whiskey, as fund manager Benjamin Tsai explains:
“Our market research has shown that the aging yields of Kentucky Bourbon are very stable and strong in the five years it takes from storage to bottling. We are therefore pleased to open up a way for our investors to participate in this increase in value. “
Although Wave assumes that most investors will hold their shares for the full term, the shares should nonetheless be tokenized in the second year. This makes it easy for investors to get out early and in return the search for new investors is also made easier.
The Wilderness Trails distillery still has open capacities for this year, which is why the fund wants to hold further financing rounds to make new purchases.