Income, Fees & Yield

Income

The Fund invests in crypto basis positions (spot and futures on the same underlying crypto commodity), staking and/or U.S. Treasury securities. Interest income from these securities is recognized each Market Day and is reflected in the Fund's NAV.

A market day is each day that both the New York Stock Exchange and the Federal Reserve Bank of Philadelphia are open. Each market day starts at 5:00pm ET and continues until 4:59pm ET on the following day, on a given day that NYSE and FRBP are open.

Fees

The Fund incurs certain expenses necessary for daily operations, including custodial, administrative, and audit fees, and pays a 75bps management fee to the Investment Manager. These expenses are accrued each market day and are reflected in the Fund's NAV.

The Investment Manager has elected to waive the management fee and cover all fund expenses until the Fund's AUM exceeds $50MM. Until that threshold is reached, investors incur no expenses.

NAV per share

The Net Asset Value per share (or NAV/S) is the price per share of USCC, and represents the value of a share, priced each market day, after accounting for all investor cash flows, interest income, and fund expenses.

The NAV/S of USCC is recorded with 6 decimal places of accuracy. The initial NAV/S was set at $10 and increments every market day due as the Fund's investments accrue interest. NAV/S is calculated by taking the total Assets Under Management (AUM) in the Fund and dividing by the total number of shares in the Fund. This calculation happens once per market day. NAV/S is the true price of USCC based on the Fund’s underlying asset prices.

Interest accrual

USCC works in a similar way to Lido's wstETH. You are minted a static amount of tokens and your token balance stays the same unless you mint, burn, or transfer. The NAV increases over time, allowing you to redeem a share of USCC for an increasing amount of U.S. Dollars or USDC.