Natively Digital. Natively Institutional.

Our multi-strategy solution seeks to monetize distinct return sources from digital assets through a single structure. This solution’s sub-strategies may include quantitative strategies and yield-focused strategies, and may selectively deploy capital into new strategies focused on potential arbitrage and dislocation opportunities. Capital allocations will change based on the opportunity set, and are governed by a risk management framework to guard against extreme tails. This solution supports quarterly withdrawals.

DISCLAIMER: Please note that past and hypothetical performance figures have many inherent limitations and assumptions and are not a guarantee of any future returns.

The information contained within this presentation is confidential, cannot be distributed without the consent of COINBASE ASSET MANAGEMENT, LLC (“CBAMˮ), and is intended solely for use by accredited investors and qualified eligible persons. This information is not a solicitation for investment, is not comprehensive, and is qualified by (and if contradictory with the offering documents, superseded by) the relevant offering documents. This presentation is not an offer to sell or a solicitation of an offer to buy any securities and may not be relied upon in connection with the purchase or sale of any security. Any such offer would only be made by means of offering documents.

Please note that the Information is being provided to you because we believe (based on statements and other indications you have provided) that (i) you have sufficient knowledge, experience and professional advice to understand and to make your own independent evaluation of the merits, risks and suitability of making an investment of these types, (ii) you are not relying on CBAM for information, advice or recommendations of any sort, except factual information, about the terms of any proposed investment, and (iii) you have sufficient financial wherewithal to accept the risks of the transaction. In connection with the transaction described, CBAM will be acting for their own accounts and that of the funds it advises respectively and will not owe any fiduciary duties to you as an investor or prospective investor. CBAM does not give any tax, accounting, legal or regulatory advice to you and you should satisfy yourself in this regard and ensure that you consult with appropriate advisors to assist in understanding the transactions contemplated by this document. Information provided reflects CBAMʼs views as of a particular time and are subject to change without notice. Prospective investors should not make investment decisions on the basis of any forward-looking statements contained herein.

This Presentation contains statements of opinion, including but not limited to, CBAMʼs analysis and views with respect to: digital assets, projected inflation, macroeconomic policy, the market adoption of digital assets, and the market in general. Statements of opinion herein have been formulated using CBAMʼs experience, research, and/or analysis, however, such statements also contain elements of subjectivity and are often subjective in nature. In addition, when conducting the analyses on which it bases statements of opinion, CBAM will incorporate assumptions, which in some cases may be shown to be inaccurate in the future, including in certain material respects.

Use of indices: Any indices and other financial benchmarks shown are provided for illustrative purposes only, are unmanaged, reflect reinvestment of income and dividends and do not reflect the impact of advisory fees. Investors cannot invest directly in an index. Comparisons to indexes have limitations because indexes have volatility and other material characteristics that may differ from the CBAM Funds.

Certain information contained herein may have been obtained from third-party sources and such information has not been independently verified by CBAM. No representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by CBAM or any other person. While such sources are believed to be reliable, CBAM does not assume any responsibility for the accuracy or completeness of such information.

Certain information contained in this Presentation constitutes "forward-looking statements," which can be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "anticipate", "target", "project", "estimate", "intend", "continue" or "believe" or the negatives thereof or other variations thereon or comparable terminology. Forward-looking statements made in this Presentation are based on current expectations, speak only as of the date of this meeting or presentation, as the case may be, and are susceptible to a number of risks, uncertainties and other factors. Assumptions relating to the foregoing involve judgments with respect to, among other things, projected inflation, the regulation of digital assets and macroeconomic policy, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the assumptions underlying the projected results and forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation to future results or that the objectives and plans expressed or implied by such forward-looking statements will be achieved.

There is no guarantee that the investment objectives will be achieved. Moreover, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Investments in Virtual Currencies, Virtual Currency Derivatives, or Digital Assets are speculative and have unique risks including but not limited to, (i) that they are not legal tender in the United States and as such the value is based on the agreement of the parties in the transaction, (ii) the price of a virtual currency is based on the perceived value of the virtual currency and subject to changes in sentiment, which make these products highly volatile potentially subject to rapid and substantial price movements which could result in significant losses, (iii) the lack of a centralized pricing source poses valuation challenges for market participants trying to exit a position, particularly during periods of stress, (iv) a cybersecurity event which could result in a substantial, immediate, and irreversible loss for market participants that trade virtual currencies, (v) virtual currency balances are generally maintained as an address on the blockchain and are accessed through private keys, which may be held by a market participant or a custodian, (vi) the lack of regulatory oversight creates a risk that a virtual currency exchange may not hold sufficient virtual currencies and funds to satisfy its obligations and that such deficiency may not be easily identified or discovered resulting in significant losses, (vii) currently virtual currencies face an uncertain regulatory landscape in the United States and many foreign jurisdictions and laws, these changing regulations or directives may impact the price of virtual currencies, (viii) the new and rapidly evolving technology underlying virtual currencies could also have adverse implications for investors, (ix) many virtual currencies allow market participants to introduce fees which may not be defined or known adding to the cost on a pass through basis to investors. None of the products mentioned in this presentation have an active secondary market. A lack of an active secondary market could mean investors are unable to redeem subscriptions at prices at or near NAV, especially in distressed market conditions. It could also mean the value of investments could change suddenly and unpredictably, or that reported NAV may not be as certain as for other types of investments with active secondary markets.

CBAM is a Registered Investment Adviser, Commodity Pool Operator, and Commodity Trading Advisor. Registration with the SEC and membership with the NFA in no way imply a certain level of skill or expertise or that any of the SEC, CFTC, NFA, or DOL have endorsed CBAM.

COINBASE ASSET MANAGEMENT, LLC CBAM IS A MEMBER OF NFA AND IS SUBJECT TO NFA'S REGULATORY OVERSIGHT AND EXAMINATIONS. CBAM HAS ENGAGED OR MAY ENGAGE IN UNDERLYING OR SPOT VIRTUAL CURRENCY TRANSACTIONS IN A COMMODITY POOL OR MANAGED ACCOUNT PROGRAM. ALTHOUGH NFA HAS JURISDICTION OVER CBAM AND ITS COMMODITY POOL OR MANAGED ACCOUNT PROGRAM, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY FOR UNDERLYING OR SPOT MARKET VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS. YOU SHOULD ALSO BE AWARE THAT GIVEN CERTAIN MATERIAL CHARACTERISTICS OF THESE PRODUCTS, INCLUDING LACK OF A CENTRALIZED PRICING SOURCE AND THE OPAQUE NATURE OF THE VIRTUAL CURRENCY MARKET, THERE CURRENTLY IS NO SOUND OR ACCEPTABLE PRACTICE FOR NFA TO ADEQUATELY VERIFY THE OWNERSHIP AND CONTROL OF A VIRTUAL CURRENCY OR THE VALUATION ATTRIBUTED TO A VIRTUAL CURRENCY BY CBAM.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Our index strategies are calibrated to the Coinbase Core Index (COINCORE) and the Coinbase Size Tilt Index (COINTILT) benchmarks. 

The Coinbase Core Index (COINCORE) tracks a dynamic core basket of the most liquid and fundamentally sound digital assets weighted by market capitalization.

The Coinbase Size Tilt Index (COINTILT) weights the assets in the Core Index by the square root of market capitalization, tilting towards constituents of a smaller market capitalization. 

The Coinbase Broad Index (COINB) is a benchmark, and is not investible. COINB provides a comprehensive view of the digital asset universe by tracking a wide array of assets. The Index focuses exclusively on fundamental screening, not the readiness to scale to institutional investors.

• Our indices take a systematic, rules-based approach to reconstitution by applying fundamental, regulatory, and liquidity filters.

• MarketVector Indices is the Benchmark Administrator, incorporated in Germany and registered with the Federal Financial Supervisory Authority (BaFin).

• Stablecoin and privacy assets are excluded. 

The strategy seeks to take advantage of the volatility and trends in digital assets through a systematic approach to investing. The strategy is trend-based, taking long exposure to bullish assets and going short with bearish trends.

Going long and short, the strategy seeks to benefit from digital asset price movements regardless of direction. The overall speed and implementation of the strategy is carefully calibrated to the unique nature of digital assets.

The strategy is available in two formats: full expression in digitally-native assets, or regulated derivatives only.

Digital assets are increasingly viewed as high-quality collateral, and borrowing demand is robust. Our strategy seeks to capitalize on this borrowing demand to deliver institutional investors a high-quality, over-collateralized, liquid credit strategy. 

The Coinbase Digital Credit Strategy is designed to be the lowest risk yield solution in digital with no direct exposure to crypto assets.

The Bitcoin mining sector occasionally faces financial stress due to Bitcoin price volatility, increased competition, and rising energy costs. Through the Digital Opportunistic Strategy, Coinbase Asset Management aims to capture investment alpha through three verticals: senior secured loans, loan books purchases, and restructurings/facility sales. 

We seek to aid in the industry's efforts to restructure and recapitalize by helping miners avoid default in exchange for higher returns + enhanced collateral packages and recourse.

Project Diamond aims to create an institutional network for digital assets.

Currently in development in the ADGM RegLab Sandbox, this blockchain-powered platform enables the near-instantaneous execution of traditional financial activities within a permissioned, private platform.

Project Diamond will:

• Lower costs for traditional financial activities. We can launch new markets with fewer frictions, responding more quickly to market interests.

• Automate complexity through blockchain-based processes across the lifecycle of financial instruments.

• Enhance regulatory engagement via next-generation oversight.

• Streamline AML KYC across instruments.

Learn more

Disclaimer: Project Diamond is a smart contract platform developed by Coinbase Asset Management, LLC (“Coinbase AM”), and is for institutional application only. Features described may be conceptual in nature or under development and are subject to change. The issuance of on-chain instruments may be considered securities activity and may subject the issuer to regulatory registration or other compliance obligations. Project Diamond has received in-principle approval from the Financial Services Regulated Activity (“FSRA”) of Abu Dhabi Global Market (“ADGM”) to conduct the regulated activity of Developing Financial Technology Services within the RegLab.