Introducing the Superstate Crypto Carry Fund (USCC)

#The Crypto Basis Opportunity & Challenges

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.

#Introducing USCC

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 our 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.

Disclosure:

All investments involve risks and no investment should be made until offering and Fund related documents, which are available upon request, are thoroughly reviewed and understood.

USCC will be limited to Investors that meet certain criteria. Investors will be required to provide certain personal and financial information before eligibility to participate in this offering is determined. The information gathered is to ensure compliance with applicable laws including anti-money laundering as well as “qualified purchaser” status, as defined under the Investment Company Act of 1940, and “accredited investor” status, as defined under the Securities Act of 1933.

Superstate Inc. is currently exempt from registration with the U.S. Securities and Exchange Commission in reliance on the private fund adviser exemption under the Investment Advisers Act of 1940. Information about Superstate Inc. can be found by visiting the SEC website www.adviserinfo.sec.gov and searching for our firm name. Neither the information nor any opinion expressed is to be construed as solicitation to buy or sell a security of personalized investment, tax, or legal advice.