The Halogen Shariah Crypto Titans Fund is aimed at investors seeking exposure to cryptocurrencies while adhering to Shariah principles.
Launched by Malaysia digital asset firm Halogen Capital, this fund’s index is designed to track the performance of a basket of leading Shariah compliant cryptocurrencies based on market capitalization.
The fund aims to outperform Bitcoin by actively managing a diverse portfolio of large-cap digital assets. It selects tokens based on market cap and adjusts their sizes based on volatility to maintain a balance between Bitcoin and Ethereum which can mitigate risks associated with individual cryptocurrencies while potentially enhancing returns through exposure to multiple assets.
The fund holds 8–12 tokens at a time, excluding underperforming tokens outside the top 20 by market capitalization. By rebalancing the portfolio and taking profits when needed, the fund aims to maximize returns compared to just holding Bitcoin.
This strategy allows investors to benefit from exposure to different digital assets that may offer higher returns than Bitcoin, aiming to outperform Bitcoin’s performance over time.
The minimum initial investment amount for the Halogen Shariah Crypto Titans Fund is RM10,000 (US$2,121.4) while the minimum additional investment amount is RM1,000 (US$212.14). The fund is designed for sophisticated investors with an extremely high-risk tolerance and a long-term investment horizon.
To achieve its goal, the fund will invest between 70% and 100% of its net asset value in at least four Shariah compliant digital assets of Bitcoin, Ethereum, Litecoin and Stellar Lumens — which are traded on licensed exchanges and serve various purposes such as payments, privacy coins, decentralized finance and other related functions.
The balance in the fund will be invested in Islamic liquid assets such as Sukuk, Islamic money market instruments and/or Islamic deposits for liquidity purposes and to safeguard the value of investments during periods of high volatility.
The fund allocates 70% of its Ethereum holdings to proof-of-stake staking. This means that cryptocurrency holders lock up a set amount of their coins as collateral to validate transactions on the blockchain. They earn extra coins as rewards for helping secure the network, boosting Ethereum’s security and generating additional income from staking rewards.
*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.
| Halogen Shariah Crypto Titans Fund | |
| Fund manager | Halogen Capital |
| Launch date | 20th May 2024 |
| Investment objective | The fund aims to provide long-term capital appreciation by investing substantially in Shariah compliant digital assets traded on the Digital Asset Exchange (DAX) registered with the Securities Commission Malaysia (SC) and/or other trading platforms as may be approved by the Shariah Advisory Council of the SC or foreign DAX approved by the Shariah advisor. The fund is not expected to make distributions. Note: Any material change to the investment objective would require unitholders’ approval. |
| Fund category | Digital assets |
| Investors’ profile | The fund is suitable for a sophisticated investor who has an extremely high-risk tolerance, a long-term investment horizon and seeks long-term capital appreciation from exposure to Shariah compliant digital assets. |
| Base currency | Malaysian ringgit |
| Initial offer price | RM1,000 (US$212.14) |
| Minimum initial investment | RM10,000 (US$2,121.4) |
| Financial year end | 31st December Note: The launch date of the fund is the date on which the sale of units of the fund may first be made. |
