The Pearl Fund, an investment firm that launched the nation’s first Opportunity Zone Business (OZB) fund, announced the launch of the Pearl Bitcoin Fund (Pearl BTC). This $500 million investment vehicle eliminates capital gains tax on Bitcoin investments.
Headed by Managing Partner Brian P. Phillips, the Pearl Bitcoin Fund combines the proven tax advantages of OZ investing with the significant growth potential of Bitcoin, enabling accredited, patient investors to eliminate long-term capital gains taxes on what has been the best-performing asset class of the past decade.
Pearl BTC solves a problem for Bitcoin investors: the tax burden when selling appreciated Bitcoin. And with the fund, investors who have recently realized capital gains can invest those gains into the Fund and defer taxes until 2026. The key benefit comes after holding for 10 years as investors can then withdraw their investment growth completely tax-free, something no other Bitcoin investment option offers, including the new Bitcoin ETFs.
The Fund’s Bitcoin investment holdings are audited and backed by institutional custodians. And the Fund’s regulatory compliance program provides investors with the security and transparency needed for confident long-term Bitcoin investment.
Some of the additional benefits of the Pearl Bitcoin Fund include:
— Zero capital gains tax through tax year 2047 after satisfying the 10-year hold requirement
— A straightforward “buy and hold” strategy focused on long-term value creation
— Generational wealth transfer benefits with no change in tax basis for inherited investments
Pearl BTC is available exclusively to accredited investors with a minimum investment of $250,000. And The Fund utilizes The Pearl Fund’s established expertise in OZ investing, combined with Phillips’ early adoption of Bitcoin dating back to 2013.
KEY QUOTES:
“One of Bitcoin’s biggest problems is capital gains tax. We’ve solved that. By applying our expertise in OZ regulations to Bitcoin investing, we’ve created a solution that lets investors harvest tax-free Bitcoin growth after a 10-year hold period.”
Managing Partner Brian P. Phillips
“Pearl Bitcoin Fund creates access to attractive tax benefits while maximizing investment exit controls in the hands of its investors rather than the Fund manager. With the federal Opportunity Zone program scheduled to sunset at the end of 2026, Bitcoin-affinity investors, with an eye towards long-term tax and cash planning, should act now rather than adopt a ‘wait and see’ posture regarding pending federal tax legislation.”
Paul Saint-Pierre, Chief Compliance Officer at The Pearl Fund
