fsBTC

Capital at risk. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

The underlying asset, Bitcoin (BTC) is characterized by significant price volatility, driven by factors such as market demand, investor sentiment, macroeconomic events, and regulatory developments. Its price can experience substantial swings within short timeframes, posing both risks and opportunities for investors. As a digital asset is not backed by any government or centralized entity, its price is driven largely by market speculation, making it subject to significant price swings

Counterparty Risk: The insolvency of any institutions providing services such as the safekeeping of the Underlying Asset may expose investors to financial loss.

CyberSecurity Risk: The hacking or security breach of any institution providing services such as the safekeeping of the underlying asset may expose investors to significant financial loss. In the event of a cyberattack or unauthorized access, these institutions could lose custody of digital assets or sensitive information, potentially resulting in the permanent loss of assets. Additionally, such incidents could lead to disruptions in service, reputational damage, and legal or regulatory consequences, further amplifying the financial risks for investors

Access Bitcoin’s inflation-resistant growth, secured 1:1 by Bitcoin with a regulated custodian, through a tax-optimized Luxembourg structure enabling instant multi-chain transferability

The Fund allocates 100% of its assets to acquire Bitcoin, (BTC) through order execution services with Coinbase Prime* and Custody Services. This enables investors to hold Bitcoin as fair value registered, transferable, secure digital security via a permanent capital structure, with instant redemptions to self-custody Bitcoin** or settle in any currency**.

* Frictionless Markets execute orders for the underlying asset, Bitcoin via direct order book integration with Coinbase Prime, the order execution is based on the market price offered through the prime broker.

** Redemption requests where the settlement currency is Bitcoin will result in the transfer of the underlying Bitcoin to the target address specified by the holder.

*** Redemption requests where the settlement currency is any currency other than Bitcoin via direct order book integration with Coinbase Prime, the order execution is based on the market price offered through the prime broker. Settlement is in Frictionless Institutional Deposit Tokens of the same base currency. Redemption of Frictionless Institutional Deposit Tokens are subject to their specific terms and conditions.

	Eligibility	Professional Clients, Qualified Clients and Qualified Investors Only
	Underlying	Bitcoin (BTC)
	Uses	Permanent Capital Structure, Inflation Resistant Security, Instant Legal Collateral, Tax Optimization
	Management Fee	0.30% on the annualized value of fsBTC, billed monthly, payable in fsBTC, FIAT or any constant NAV security.
	Custody Fee	0.50% on the annualized value of fsBTC, billed monthly, payable in fsBTC, FIAT or any constant NAV security.
	Redemption Fee	0.25% on the value of fsBTC or at spot rate in FIAT or any constant NAV security.
	Benchmark	Bitcoin (BTC)
	Domicile	Luxembourg
	Minimum Investment	USD 0.01
	Minimum Redemption	USD 0.01
	Redemptions	Instant - 365/24/7 (Market Pricing from Coinbase Prime)
	Proof of Reserve	fsBTC Custodial Vault Address
	Custodian	Coinbase Custody International Limited
	Transferability	Instantly transferrable between permissioned holders
	Legal Structure	Tracker Certificate (tokenized certificate of security) issued by bankruptcy remote, orphan-entity protected compartment of Frictionless Markets Securities FT.
	Regulatory Compliance	Issued by Frictionless Markets Securities FT under the MiFID II prospectus regulation, Securitization Law of 2004 (Luxembourg as amended), Financial Collateral Act 2005 (Luxembourg as amended), Blockchain Acts of Luxembourg (I, II, III as amended)
	Documents	Fact Sheet Final Terms
	Networks

Why invest in the Frictionless Bitcoin Treasury Fund?

Investing in fsBTC provides a secure, fully backed way to gain exposure to Bitcoin's inflation-resistant potential and long-term growth without the complexities of directly managing or custodying digital assets. This approach allows investors to safely bypass the operational burdens of key management, or needing to time the market accurately. With professional custody and compliance standards, fsBTC enables straightforward access to Bitcoin's benefits, supporting a tax-optimized, reliable way to hold Bitcoin as part of a balanced capital strategy.

Hedge Inflation

fsBTC enables investors to hold Bitcoin in a compliant manner, providing exposure to a historically inflation-resistant asset, relevant for those looking to diversify away from traditional currency debasement.

Secure Custody

fsBTC, is transparently and fully backed 1:1 by Bitcoin, representing an actual claim on Bitcoin held in regulated custodial services, reducing operational risks associated with self-custody.

Transferability

As a registered and transferable security, fsBTC can be efficiently transferred across chains, serving as legal financial collateral, appealing to both private and public investors needing flexibility.

Legal Collateral

fsBTC transforms Bitcoin into a legally recognised, fully collateralised registered security, bridging traditional finance with DeFi for seamless, compliant capital solutions.

Tax Optimized

fsBTC is a tax-efficient, permanent capital structure designed for sustainable Bitcoin investment and optimized for institutional balance sheets

Always On

No blackout periods, no downtime! fsBTC operates in a 365/24/7 market, ensuring uninterrupted access to secure, transparent Bitcoin transactions anytime, anywhere.

What type of financial instrument is fsBTC?

fsBTC is a permissioned token certificate representing an investment in the underlying Bitcoin digital asset.

fsBTC is issued as a financial instrument by FRICTIONLESS MARKETS SECURITIES Securitisation Fund RCSL O46, organised under the laws of Luxembourg and represented by FRICTIONLESS MARKETS Sàrl its Management Company, RCSL B272278 with the Legal Entity Identifier LEI, 213800PVGXAUM7KDT872 within the bankruptcy remote and orphan-entity protected compartment with the name fsBTC.

fsBTC is a registered security is the form of a zero-coupon debt note which is utilized to purchase and custody Bitcoin on behalf of the investor.

How do I invest in fsBTC?

To invest in fsBTC, you can participate through authorized distributors or via Frictionless Markets' digital platform. After you are onboarded and verified, your account and wallet addresses are permissioned into the Frictionless protocol.

Frictionless Institutional Deposit Tokens (fsUSD) are required to invest in fsBTC. You can obtain fsUSD by depositing funds to your account or converting USDC. See the fsUSD product for more information.

Once your order has entered the underlying fund order book your fsBTC tokens will be minted and exchanged for fsUSD into your wallet. This typically takes a few seconds to complete.

Where is the Bitcoin underlying fsBTC held?

The Bitcoin backing fsBTC is securely held in institutional-grade custody solutions provided by Coinbase Custody International Limited, a regulated VASP in the EU.

If I invest in fsBTC, do I own the Bitcoin underlying fsBTC?

As an investor, you own fsBTC as a digital security representing fully collateralized and 1:1 backed Bitcoin. While you don’t hold the Bitcoin directly, the underlying Bitcoin is legally segregated and fully reserved for fsBTC holders, therefore ensuring you have a fully redeemable claim on the Bitcoin underlying.

What makes fsBTC secure and compliant?

fsBTC leverages audited smart contracts and operates within established regulatory frameworks. It is registered as a transparent financial instrument, providing investors confidence in compliance and security.

fsBTC Tokens are registered notes that adhere to the MiFID II prospectus regulation, the 2004 Securitization Law of Luxembourg, the 2005 Financial Collateral Act of Luxembourg, and the Blockchain Acts I, II, and III of Luxembourg.

Each token issued by Frictionless Markets originates from its own segregated compartment within the bankruptcy-remote structure of Frictionless Markets and is classified as a financial instrument. Frictionless Institutional Deposit Tokens are crypto assets recorded in the DLT that qualify as financial instruments under the laws of 2004, 2005, and 1915, and therefore currently fall outside the scope of the MiCA regulation.

Can I invest in fsBTC using another currency?

Yes, first you must convert your alternative currency to fsUSD via our FXSwaps. For example fsJPY to fsUSD.

FXSwaps support spot and forward conversions, spot conversions will occur at the current exchange rate provided by our regulated FX partner, Alpha FX, through Frictionless Markets. Forward conversions are available upon request via our portal.

Can I invest or redeem fsBTC with USDC?

Yes, Frictionless offers instant ERC20 swaps through our partnership with Circle and other VASP-registered custodians in the EU.

For more information on ERC20 swaps, click here

Can I redeem my fsBTC in Bitcoin?

Yes, if you wish to take direct custody or custody with another provider, the Bitcoin underlying can be redeemed from your fsBTC position.

Frictionless Bitcoin Treasury Fund