A fund
launched in March with the aim of tokenizing up to $20 million worth of
whiskey has announced its first successful investment round and the
purchase of its first tranche of Kentucky bourbon.

Wave Financial
Group announced Sept. 11 that its Kentucky Whiskey 2020 Digital Fund had
bought an initial 1,000 barrels from the Wilderness Trails distillery.

Investors are expected to benefit from the spirit’s price appreciation during the aging process of around five to six years. As Cointelegraph previously reported, the value is expected to increase from around $1,000 per barrel to around $4,000 per barrel during this period.

Certain
real-world assets such a whiskey are exceptionally difficult for
investors to get exposure to, explained fund manager Benjamin Tsai:



“Our
extensive research has shown that the returns from ageing Kentucky
bourbon are very stable and strong over the circa 5 year period it
spends in barrels before being bottled, so we are delighted to be able
to provide investors with exposure to this price appreciation.”



While
Wave expects most investors to hold the asset for the full term until
it is bottled, the holding will be tokenized in year two. This will
allow any investor who wishes to exit the scheme early to do so,
provided they can find a buyer.

The fund’s access to the
Wilderness Trails distillery’s production capacity for the year is still
open, and Wave is continuing to raise capital for further investment
rounds.