Bitcoin exposure.
Real estate protection.
bitHedge Fund I is a closed-end private fund that pairs uncapped Bitcoin upside with principal protection backed by first-position liens on commercial real estate. For accredited investors.
Request InformationTwo pools of capital. Opposite needs. No existing solution.
How do you get Bitcoin upside without the downside?
Every existing solution either caps the upside, dilutes exposure through capital splits, or relies on counterparty paper—swaps, derivatives, structured notes.
You believe Bitcoin is going up. You can’t access the return.
You own unencumbered commercial real estate. To get Bitcoin exposure, you’d have to sell property, take on debt, or give up appreciation.
A collateral swap between two investor classes with inverse preferences.
Capital provides liquidity. Real estate provides the floor. bitHedge structures the swap, manages the collateral, and earns carry on the value created.
Capital In, Collateral Committed
Class A investors commit capital. In parallel, Class B real estate partners pledge first-position liens on unencumbered commercial property. All assets are held at a qualified institutional custodian.
Single Closing, Full Protection
One coordinated event: Bitcoin is purchased, RE liens are recorded simultaneously, and the protected floor is set. Every dollar is backed by real estate from the moment of closing. The fund closes to new capital.
Hold, Then Settle
The fund holds Bitcoin for 36 months—or exits early if NAV reaches 2x the protected floor. At reconciliation, gains are distributed through a single 50/40/10 waterfall: 50% to Class A, 40% to Class B, 10% GP carry. If NAV is below the floor, the enforcement waterfall activates to make investors whole.
Structural advantages, not marketing claims.
Substantially All Capital to Bitcoin
Unlike products that split capital between Bitcoin and a protection asset, bitHedge sources protection from a separate collateral layer entirely. Capital is nearly 100% deployed to Bitcoin at closing; only fund formation costs are withheld.
Inverse Preference Swap
Protection is not manufactured by buying insurance. It is sourced from parties who actively want the risk they are absorbing. Both sides pull toward the deal.
First-Position Real Estate Liens
Hard asset collateral, legally perfected, from owners who carry no debt on their properties. Not paper contracts with unnamed counterparties. Collateral is underwritten to a maximum 50% loan-to-value ratio, with a target LTV of approximately 25%—providing a 50% to 75% margin of safety against collateral value, protective even in historical worst-case commercial real estate drawdowns.
Simple Hold, Clean Exit
No interim triggers, no periodic rebalancing, no complex waterfall math during the hold. One reconciliation event at 36 months (or early at 2x). One waterfall. Investors can underwrite it in a single meeting.
No Rehypothecation
Bitcoin is held at a qualified institutional custodian. It is not lent, pledged, or used as collateral for anything else.
Regulatory Clarity
Reg D 506(c) + 3(c)(1) structure. Well-understood by institutional investors and their counsel. No novel legal theory required.
Built to institutional standard.
The fund’s compliance and operational infrastructure is designed to meet the expectations of sophisticated investors and their counsel.
Qualified Custodian
Institutional-grade custody for all fund assets
Fund Administrator
Third-party onboarding, KYC/AML, and investor reporting
Annual Audit
Crypto-specialized CPA firm, independent verification
Legal Counsel
Securities, fund formation, and real estate counsel engaged
Accredited Investors Only
506(c) verified accreditation, no exceptions
RE Lien Perfection
UCC-1 filings, deeds of trust, third-party valuations
Key parameters
| Target Fund Size | $20M (or BTC equivalent) |
| Minimum Investment | $5M per investor, or BTC equivalent |
| Management Fee | 1.0% annually, charged against Class A NAV |
| Carried Interest | 10% of fund net profits—GP’s allocation in the 50/40/10 waterfall at reconciliation |
| RE Collateral LTV | Maximum 50% LTV; target approximately 25% LTV |
Management fee (1%) accrues daily and is paid quarterly from fund assets by liquidating a small portion of Bitcoin holdings. Carried interest (10%) is allocated on NAV gains at reconciliation via the fund’s 50/40/10 waterfall—the GP earns nothing if Bitcoin moves sideways or declines. No hurdle rate. All terms are subject to the final Private Placement Memorandum.
Closed-end fund. Accredited investors only. Principal protection subject to the terms and risk factors set forth in the Private Placement Memorandum. This is not a guarantee of returns.
Daniel Holbrook
15+ years in commercial real estate investment, development, valuation, and syndication. Over $2B of commercial real estate appraised and approximately $20M invested across multifamily, net-lease, and development-land strategies.
Full-time on bitHedge and the development of real-estate-anchored Bitcoin strategies.
This fund will not be sold. It will be understood.
bitHedge Fund I is a private offering. Schedule a conversation to receive the full thesis, structure documentation, and fund terms.
Schedule a Conversation30-minute introductory call with bitHedge management