Apex Token Fund, a crypto-focused, tokenized Fund-of-Funds (FOF) is aiming to raise up to $100 million via an initial coin offering (ICO), CoinDesk reported.
The key idea is that tokenization gives buyers a way to cash out their investment early on, without diminishing the underlying principle.
"The whole idea of applying a blockchain to this type of structure is it unlocks liquidity between the vintage and harvest date of raising the fund," Joseph Bradley, a fund co-founder, told CoinDesk in an interview.
Under the scheme, each token will represent a proportional piece of equity in the fund. Once the tokens are distributed to investors, they can start trading those tokens on exchanges.
The fund tentatively plans to run a presale of the token – also called Apex – sometime in January, with a public sale in February. The fund will launch if a minimum of $25 million is raised, and has a hard cap of $100 million.
Joseph Bradley and Chris Keshian (another co-founder) also built Neural Capital, another crypto fund that launched in December 2016.
Keshian said: "The idea behind this democratization of access is to allow your average crypto holders to gain exposure to these fund returns through these tokenized methods ... We also saw this space where a lot of people are investing in ICOs. They aren't necessarily investing because they believe in the technology. They are investing for these non-linear returns."