A fund launched in March with the aim of commercializing up to $ 20 million worth of whiskey has announced its first successful round of investments and the purchase of its first serving of Kentucky bourbon.
Wave Financial Group announced on Sept. 11 that its Kentucky Whiskey 2020 Digital Fund had initially purchased 1,000 barrels from Wilderness Trails Distillery.
Investors are expected to benefit from the liquor’s price increase during the aging process of around five to six years. As Cointelegraph previously reported, the value is expected to rise from around $ 1,000 per barrel to around $ 4,000 per barrel during this period.
Certain real assets like whiskey are extraordinarily difficult to access for investors, fund manager Benjamin Tsai said:
“Our extensive research has shown that the yields of aged Kentucky bourbon are very stable and strong over the approximately 5 year period it spends in kegs before being bottled, so we’re excited to offer this to investors To enable appreciation of prices “.
While Wave assumes that most investors will hold the asset for the entire term until bottled, the share will be tokened in the second year. This allows any investor who wants to leave the plan early as long as they find a buyer.
The Fund’s access to the Wilderness Trails distillery’s manufacturing capacity for the year is still open and Wave continues to raise capital for further rounds of investments.