Superstate Introduces Crypto Carry Fund (USCC), a New Investment Offering for Institutional Clients

At Superstate, they reportedly develop sophisticated investment solutions for institutional investors, aligning with their mission to modernize the investing landscape.

By leveraging blockchain technology’s speed, programmability, and compliance advantages, Superstate reportedly create tokenized products “that meet the evolving demands of the financial sector.”

Superstate has introduced their second investment offering, the Superstate Crypto Carry Fund (USCC).

USCC is a private, tokenized fund designed to “provide compliant and convenient exposure to the crypto ‘cash-and-carry’ trade for qualified purchasers, with ownership represented in both tokenized and non-tokenized shares.”

USCC’s strategy capitalizes on the price differences “between spot and futures markets for Bitcoin and Ether.”

USCC will optimize the portfolio for “both yield and risk across basis opportunities, staking, and U.S. Treasury securities relative to the Federal Funds Rate.”

By offering the option to issue USCC as an ERC-20 token “on the Ethereum blockchain, the Fund will, in the future, allow qualified investors to use it for collateral or settlement, enhancing its utility.”

For years, the cash-and-carry trade has “consistently delivered attractive yields with minimal directional market exposure, both on absolute terms and relative to the Federal Funds Rate.”

This strategy involves buying an asset (long leg) and shorting “the corresponding future (short leg) to lock in a predictable return as the two legs converge.”

In the crypto market, liquid futures for Bitcoin (BTC) and Ether (ETH) provide “ample opportunities for basis trading.”

Additionally, long Ether positions can “be staked to generate additional yield on deployed capital, further enhancing returns.”

However, investors often face challenges “implementing the strategy, including establishing multiple counterparty and exchange connectivity, margin requirements, and consistent position monitoring to manage volatility.”

Despite these obstacles, the demand for access “to this lucrative strategy remains high.”

USCC addresses these challenges by “offering a convenient, compliant, and actively managed approach.”

Here is how USCC stands out:

  • Active Management: Superstate, an Exempt Reporting Adviser, professionally manages the Fund. Superstate leverages our deep crypto market knowledge and strong network of institutional partners to optimize the portfolio across basis opportunities, staking, and U.S. Treasury products.
  • Institutional Service Providers: USCC executes trades through top-tier U.S.-based prime brokers and trusted qualified custodians, ensuring secure, compliant, and efficient fund management.
  • Lower Fees: Unlike traditional hedge funds that charge high management and performance fees, USCC charges a flat management fee of only 0.75%.
  • High Transparency: USCC provides daily NAV calculations by a third-party calculation agent, providing daily transparency, unlike hedge funds that typically report monthly or quarterly. Underlying positions held in the Fund are also publicly available on a weekly basis.
  • Flexible Liquidity: USCC offers daily liquidity, unlike hedge funds that typically offer 30-day or quarterly redemptions.
  • Regulatory Compliance: USCC offers a compliant solution tailored for qualified investors within a secure, tokenized structure. Our Ethereum-based Allowlist enforces onchain ownership, transfer, and compliance between other KYC’d investors.
  • Bankruptcy Remoteness: USCC operates as a series of a Delaware Trust, which is separate and distinct from Superstate, safeguarding investor assets from any potential corporate claims or insolvency of the management firm.

Following the introduction of USCC alongside their tokenized treasury fund (USTB), Superstate now “offers two funds designed to help institutional investors optimize liquidity and generate consistent returns to meet the dynamic needs of traditional and crypto capital markets.”



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