Digital Assets: A Core Strategic Allocation
Digital assets are no longer a niche product. In an era of unprecedented monetary expansion and concerns of currency debasement, they represent a core strategic allocation. As the financial landscape evolves, Bitcoin and other leading cryptocurrencies have emerged not just as high-growth assets, but as vital components for hedging and diversification in institutional portfolios.
Explosive Market Opportunity
The digital asset market is experiencing unprecedented institutional adoption and is poised for significant future growth, driven by both asset management and governmental interest.
AUM Surge
$129B
By the end of 2024, U.S. spot Bitcoin ETFs attracted $129 billion of assets under management, showcasing explosive growth and investor confidence.
Surpassing Traditional Assets
The success of U.S. spot Bitcoin ETFs has already surpassed that of established vehicles like gold ETFs in attracting new capital, highlighting a fundamental shift in investment trends.
The Next Wave: $426B in Projected Inflows
According to Bitwise/UTXO projections, institutional investors are expected to accumulate over 4.2 million BTC by the end of 2026, representing more than 20% of the total Bitcoin supply, signaling a monumental shift in capital allocation.
Projected Institutional Share by 2026
20% of Total Supply
Projected Institutional BTC Holdings
Sovereign wealth funds, nation states, and wealth platforms are expected to hold over 20% of BTC supply, with over 20 U.S. states exploring treasury allocations to Bitcoin.
Derivatives Infrastructure Has Reached Institutional Size
Robust derivatives markets for Bitcoin, Ethereum, Solana, XRP, and Dogecoin demonstrate growing institutional flows and liquidity. With substantial daily volumes and significant open interest, this market provides fertile ground for advanced strategies.
BTC: >$20B in weekly options volume. ETH: >$12B weekly options volume. SOL, XRP, DOGE options volume growing 10x year-over-year.
The Institutional Challenge: Unmanaged Risk
With growing adoption comes a critical need for smarter, risk-controlled exposure. Traditional methods leave institutional capital exposed to extreme volatility and full downside risk.
Traditional Exposure: Full Downside Risk
Passive ETFs and spot holdings absorb the full, unforgiving volatility of the crypto market, leading to uncertain returns and significant downside exposure.
High Volatility
Full Downside
The SEBAL Approach: Risk-Mitigated Growth
Our strategies are purpose-built to shape risk, not simply absorb it, providing a structured, risk-mitigated growth profile that aligns with institutional objectives.
Defined Outcome
Shaped Risk
The SEBAL Solution: A Dual-Strategy Approach
SEBAL Digital Asset Funds are built to solve this gap. We offer a sophisticated, dual-strategy solution purpose-built for institutional allocators.
Strategy 1:
Downside Protected Defined Outcome Strategy
This strategy delivers capped exposure to the price return of the top 5 cryptocurrency assets (BTC, ETH, XRP, SOL, DOGE), while limiting the maximum loss to 20%. By purchasing protective put options and selling out-of-the-money call options, we create a defined payoff profile that balances growth with capital preservation.
Key Advantages:
Diversified Exposure:
Balanced growth across leading cryptocurrency assets.
Capital Preservation:
Losses capped at 20%, even in severe market downturns.
Defined Outcome:
12-month period optimizes risk-reward.
Annual Liquidity:
Clear investment horizon supports strategic planning.
Risk Management:
Options structure mitigates volatility risks.
Structured Strategy vs. Market Return: Defined Upside & Downside
This chart illustrates the predefined payoff profile of our Defined Outcome Strategy compared to a direct market investment, showcasing how it limits downside while capturing significant upside potential.
Expected Payoff Profile:
*The maximum gain is an estimate and is dependent upon implied volatility, funding rates, and other variables in the market.
Strategy 2:
Covered Call Income & Price Appreciation
This strategy generates quarterly income by selling 25% out-of-the-money call options on the top 5 cryptocurrency assets, while maintaining long exposure for price appreciation. Cryptocurrencies' high volatility maximizes premium income, enhancing returns and providing a buffer against declines.
Key Advantages:
- **Yield Enhancement:** Consistent premiums boost baseline returns.
- **Volatility Advantage:** Higher premiums than traditional assets due to cryptocurrency's volatility.
- **Downside Floor:** Premiums reduce the breakeven price of assets.
- **Disciplined Exits:** Calls create natural exit points on upside moves.
- **Quarterly Liquidity:** Regular income distributions enhance flexibility.
Potential Return Profile
This chart highlights the potential return profiles for the Covered Call Income & Price Appreciation strategy, demonstrating its attractive yield and growth potential.
What Sets Us Apart: Beyond ETFs
While BTC ETFs have introduced accessibility, they are limited in scope and performance. SEBAL Digital Asset Funds deliver institutional-grade exposure, yield generation, and defined risk control in a structure built for sophisticated investors. Here's why we outperform passive strategies and DIY approaches:
Broader Exposure
Our strategies go beyond Bitcoin, providing diversified exposure to the five leading tokens (BTC, ETH, XRP, SOL, DOGE) through active selection and rebalancing. ETFs typically offer only single-asset exposure.
Covered Call Alpha
We execute systematic, disciplined, options-based strategies and volatility overlays across multiple assets, rebalanced and actively managed for better income capture and downside support.
Defined Outcome Risk
SEBAL Digital Asset Funds include a 12-month structured strategy capping downside at 20% while targeting a defined 65% upside, something ETFs or retail derivatives cannot replicate.
Institutional Infrastructure
Investors benefit from qualified custody, NAV reporting, and streamlined onboarding. No DIY execution, no dealing with individual wallets, no tax complexity.
Purpose-Built for Allocators
SEBAL Digital Asset Funds are built for family offices, fund allocators, and accredited investors seeking structured crypto yield.
How Do We Compare to DIY BTC ETF Strategies?
SEBAL Digital Asset Funds are not a simple retail product. They are an engineered, multi-asset strategy designed to capture yield, manage volatility, and support growth and wealth preservation in crypto.
| Feature | Spot Holdings | BTC ETF | SEBAL |
|---|---|---|---|
| Diversified Asset Base | Manual | BTC only | BTC, ETH, SOL, DOGE, XRP |
| Structured Risk Control | No | No | Yes (Defined Downside) |
| Yield Potential | 0%* | 0% | 30% Ann. via Options |
| Professional Mgmt | Self-managed | None | Active overlays, rebalancing |
| Scalable | Liquidity-dependent | Limited by product mandate | Yes, (across large cap tokens) |
| Tax and Admin Burden | On Investor | On Investor | Fund handles, custody reporting, K-1 |
*Unless assets are staked or lent by the individual.
Our Comprehensive Approach
SEBAL Digital Asset Funds bridge the gap between TradFi and cryptocurrencies with a sophisticated, investor-centric design, ensuring robust management and security.
Diversified Portfolios
Professionally managed investments in top cryptocurrency assets through familiar structures.
Tailored Risk Profiles
Strategies designed to match investor risk tolerance and objectives.
Systematic Strategies
Systematic, back-tested strategies to maximize the risk/reward investment outcomes.
Expert Oversight
Our team manages market volatility, operational complexities, and portfolio allocation.
Institutional-Grade Custody
Partnered with a leading custodian to protect assets from hacks and theft.
Seamless Onboarding
Streamlined process allows investment in minutes, no technical expertise required.
Regulatory Clarity
Operates within a compliant framework, benefiting from recent legislative advances like the SAB 121 repeal and DUNA Act.
Fund Structure & Operations
Details on the operational framework and key terms of the SEBAL Digital Asset Funds.
Key Fund Details
Fund Vehicle: Delaware Fund
Target Raise: $15 million (initial)
Minimum Investment: $100,000
Fees: 1.5% Management Fee & 20% performance
Liquidity: Annual
Eligible Investors: Accredited, RIAs, Family Offices, Institutions
Custodian: Bitgo
Admin: NAV or Formidium
Tax Reporting: Full K-1 delivery
Transparency: Monthly investor updates
Strategy Access: Available via flagship fund or custom Separately Managed Accounts (SMAs).
Risk Oversight: Internal risk framework with daily exposure monitoring and rebalancing triggers.
Our Team: Unparalleled Expertise
Our leadership team combines unparalleled expertise in blockchain, financial markets, and investment management, ensuring our Funds deliver exceptional results for investors.
Alan Mittleman
Chief Investment Officer
Alan led trading desks at Bear Stearns, Credit Suisse, and other global banks, generating up to $600M in annual revenue while managing teams of 50 people.
Sandeep Kaur
Co-Founder & Managing Partner
With 17 years in software and blockchain, Sandeep, an early cryptocurrency adopter since 2014, led DeFi at Reach and USDC at Circle. As Head of Web 3.0 at Innova, she advised enterprises on blockchain adoption, specializing in tokenization and stablecoins. Holds an MBA in Information Technology and MIT Fintech certification.
Eb Gaines
Co-Founder & Managing Partner
With 30 years in hedge funds, venture capital, and proprietary trading, Eb founded Middle Fork Partners in 2003, serving hedge funds and tech startups, and led global marketing for ABN AMROs hedge fund client base. Holds FINRA Licenses 4, 24, 7, and 63.
Appendix: Detailed Market Data
Explore further details on Bitcoin holdings, federal and state initiatives, and institutional allocations.
| Institution Type | Current BTC Holdings | Projected BTC Holdings by 2026 | Projected Investment 2026 (USD B) |
|---|---|---|---|
| Public Companies | 757,593 BTC | 1,000,000+ BTC | $117.8B |
| Governments (Nation States) | 529,705 BTC | 1,060,000 BTC | $161.7B |
| Wealth Management Platforms | No Public Data Available | 1,210,000 BTC | $122.5B |
| Sovereign Wealth Funds | No Public Data Available | 200,000 BTC | $7.8B |
| U.S. States & Treasuries | No Public Data Available | 100,000 BTC | $5.2B |
| Pension Funds | No Public Data Available | 170,000 BTC | $9.5B |
| Insurance Companies | No Public Data Available | 160,000 BTC | $8.3B |
| Endowments & Foundations | No Public Data Available | 230,000 BTC | $11.1B |
| ETFs & Funds | 1,391,580 BTC | N/A | N/A |
| Private Companies | 398,323 BTC | N/A | N/A |
| BTC Mining Companies | 100,780 BTC | N/A | N/A |
| DeFi Entities | 166,330 BTC | N/A | N/A |
| Initiative | Scope and Mechanics | Amount of BTC Involved | Current Status |
|---|---|---|---|
| BITCOIN Act of 2025 (S. 954, Sen. Lummis) | Establishes a Strategic Bitcoin Reserve (SBR) Inside the Treasury. "Bitcoin Purchase Program" mandates Treasury to buy 200,000 BTC per year for five years (total 1,000,000 BTC). Funded via revaluation of Treasury gold certificates and the first $6B/yr of F. | 1,000,000 BTC (~$100B) | Introduced March 11, 2025 in Senate Banking Committee. |
| Executive Order Establishment of the Strategic Bitcoin Reserve & U.S. Digital Asset Stockpile | Directs Treasury to transfer every BTC forfeited through civil/criminal actions to the SBR. Prohibits the sale of SBR coins; altcoins may be liquidated into BTC or USD. Creates "proof-of-reserve" public attestations. | = 198,000 BTC already in federal custody ($19.8B) to be swept into SBR no new purchases authorized. | Enacted March 6, 2025. |
| Exchange Stabilization Fund amendment (within S. 954) | Adds BTC to instruments that the Emergency Support Functions (ESF) may hold and transact. | Contingent on BITCOIN Act passage. | See the BITCOIN Act |
| State | Bill/Act | Proposed Allocation | Max Allocation | Current Status |
|---|---|---|---|---|
| South Carolina | HB 4256-Strategic Digital Assets Reserve Act | ≤10% per fund and absolute cap 1,000,000 BTC | 1,000,000 BTC | House Ways and Means Committee |
| North Carolina | SB 327-Bitcoin Reserve and Investment Act | ≤10% of all public funds | 127,000 BTC | Senate Finance Committee |
| Minnesota | HF 2946 Minnesota Bitcoin Act | ≤ 10% of the State Board of Investment assets | 98,000 BTC | House State Government Finance Committee |
| Texas | SB 21-Texas Strategic Bitcoin Reserve Act | Comptroller may accumulate BTC from the ESF; no fixed percentage | 27,100 BTC (if 10% ESF) | Passed Senate and House; Awaiting Governor's signature |
| New Mexico | SB 275 Strategic Bitcoin Reserve Act | ≤5% of Land-Grant and Severance-Tax funds | 20,500 BTC | Senate Finance Committee |
| Ohio | HB 703/SB 57 Ohio Bitcoin Reserve Act | ≤ 10% of GRF surplus and select funds | 12,000 BTC | House and Senate Finance Committees |
| West Virginia | SB 465 Inflation Protection Act | ≤10% of the public monies in BTC | 8,000 BTC | Senate Banking and Insurance Committee |
| New Hampshire | HB 302 Digital Asset and Precious-Metals Reserve Fund | ≤5% of all state funds | 7,500 BTC | Enacted May 5, 2025 |
| Michigan | HB 4087 adds §351a to Mgmt. and the Budget Act | ≤10% of General and Stabilization funds | 4,500 BTC | House Comms and Tech Committee |
| Massachusetts | SD422-/S.1967 Bitcoin Strategic Reserve | ≤5% of the Stabilization Fund | 4,100 BTC | Joint Committee on Revenue |
| Alabama | HB 482/SB 283 Strategic Bitcoin Reserve | ≤10% of public funds; ≥ 5-yr hold | 3,000 BTC | Pending in Finance Committees |
| Georgia | SB 228-State Depository Board Bitcoin Investment Act | ≤5% of Revenue Shortfall Reserve | 2,800 BTC | Senate Banking and Finance Committee |
| Rhode Island | HB 6007- Digital Asset Retention Act | ≤10% of uncommitted funds | ~550 BTC | House Finance Committee |
| Arizona | HB 2749- Bitcoin and Digital Assets Reserve Fund | Funded by unclaimed digital assets, staking rewards, airdrops, no taxpayer purchases | TBD | Enacted May 7, 2025 |
| Illinois | HB 1844 Strategic Bitcoin Reserve Act | Bitcoin-only fund; no percentage cap | TBD | House Revenue and Finance Committee |
| Kentucky | HB 376-Inflation Protection Act | BTC across state accounts; no cap specified | TBD | House Banking and Insurance Committee |
| Maryland | HB 1389 Strategic Bitcoin Reserve Act | Reserve seeded by enforcement proceeds; no ceiling | TBD | Hearing June 11, 2025 |
| Missouri | HB 1217- Bitcoin Strategic Reserve Fund | Donationfriendly- fund; ≥ 5-yr hold; no cap | TBD | Awaiting committee vote |
| Agency | BTC Held / Affected | Notes |
|---|---|---|
| Department of Justice / U.S. Marshals | ~198,000 BTC seized | Seized from cases like Silk Road, Bitfinex hack. Executive Order now mandates transfer into Strategic Bitcoin Reserve. |
| Federal Reserve | No direct BTC holdings | Remittances earmarked (up to $6B/year) to fund the 1M BTC purchase schedule in Senate Bill S.954. |
| General Services Administration (GSA) | Historically auctioned DOJ-assigned BTC | Auctions paused pending Strategic Bitcoin Reserve (SBR) implementation. |
Structure Crypto Exposure the Right Way.
This is your moment to structure crypto exposure the right way.
info@sebalcapital.com
www.sebalcapital.com
DISCLAIMER: Legal Information and Disclaimers
This document ("Presentation") is confidential and intended solely for informational purposes. It does not constitute an offer to sell or a solicitation of an offer to buy any securities or investment interests in Sebal Digital Asset Funds ("Fund") or any other vehicle managed by SEBALCapitalLLC ("Tantrum Ventures"). Any such offer will be made only by means of definitive offering documents, including a Private Placement Memorandum ("PPM"), Operating Agreement, and Subscription Agreement, and only in jurisdictions where permitted by law.
This Presentation is intended solely for use by qualified, accredited investors as defined under Rule 501(a) of Regulation D of the Securities Act of 1933. The Fund is being offered pursuant to Rule 506(c) under Regulation D and is not registered under the Securities Act or the Investment Company Act of 1940.
While SEBAL Digital Asset Funds employs structured investment strategies designed to limit downside exposure (e.g., through defined-outcome options overlays), investments in the Fund still involve risk, including the potential for losses up to the amount invested. Investors should understand that strategy execution, counterparty, or market dislocation risks could result in partial or full loss despite protective structuring. Liquidity is limited and early withdrawals may not be permitted. This Presentation contains forward-looking statements, including but not limited to expectations regarding strategy outcomes, performance targets, and market conditions. These statements are inherently uncertain and subject to change. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. The information contained herein has been obtained from sources believed to be reliable but is not guaranteed for accuracy or completeness. SEBAL Capital makes no representations or warranties, express or implied, as to the information's accuracy or completeness and assumes no obligation to update or revise it. This material may not be copied, reproduced, or redistributed without the prior written consent of SEBALCapitalLLC. All prospective investors should consult their legal, tax, and financial advisors prior to making any investment decision.