Maintained for documentation purposes:
The BTC Trading Pass-Through Fund (BTC-TRADING-PT) is an exchange-traded fund that trades on the BTC Trading Corp exchange. The fund holds shares of BTC Trading Corp (LTC-GLOBAL) and issues its own shares that represent the assets held by the fund. LTC-GLOBAL shares are traded on the LTC-GLOBAL exchange and are denominated entirely in LTC. This fund enables investors to effectively own and trade shares of BTC Trading Corp denominated in BTC, as well as to receive dividends from LTC-GLOBAL denominated in BTC.
Each share of BTC-TRADING-PT represents 1/10th of a share of LTC-GLOBAL. Shares do not represent ownership of the fund or ownership of John Galt Asset Management. Shares of BTC-TRADING-PT are issued only for shares of LTC-GLOBAL actually held by the fund.
The fund accumulates dividends paid by LTC-GLOBAL, converts them to BTC, and distributes the proceeds (less fees) to shareholders once per month. Details are explained below.
Highlights- Shares represent 1/10th of a share of LTC-GLOBAL
- Shares are traded on the BTC-TC exchange and are denominated in BTC.
- Shares can be redeemed for shares of LTC-GLOBAL, and vice-versa.
- Shares normally trade at 1/10th of the current price of LTC-GLOBAL but can be higher or lower.
- Shareholders have limited LTC-GLOBAL voting rights.
LTC-GLOBAL Voting RightsShares of LTC-GLOBAL grants the shareholders special voting rights. While these rights are granted to John Galt, an effort to extend and transfer limited rights to shareholders of BTC-TRADING-PT is made.
Voting on LTC-GLOBAL motions: When feasible, an identical motion will be filed for the BTC-TRADING-PT security and shareholders may vote on the motion. The outcome of the motion determines how the fund manager votes in the actual motion. If this is not feasible, the fund manager may vote according to its own interests.
Voting on new security listings: Ownership of LTC-GLOBAL shares grants shareholders the right to approve new securities on the LTC-GLOBAL and BTC-TC exchanges. This right is extended to shareholders of BTC-TRADING-PT in a limited way. Whenever a new security is listed, a motion will be filed allowing shareholders to vote to approve the new security. At least 200 shares must vote YES or NO for the motion to be considered valid. If the motion passes or fails by at least 100 shares, then the fund manager will vote according to the outcome of the motion. The voting will close in 5 days for IPOs and 7 days for existing securities. Shares of the fund owned by John Galt or the fund will not participate in the motion.
DividendsBTC-TRADING-PT normally receives a dividend once per month from the LTC-GLOBAL shares it holds. It is typically paid after the end of the month. The monthly management fee is deducted from the proceeds and paid to the fund manager. The remaining proceeds are converted to BTC and distributed to BTC-TRADING-PT shareholders within 5 business days of receiving the dividend from LTC-GLOBAL.
FeesJohn Galt charges a normal fee of 1% of the value of the assets per year, paid as 1/12 of 1% each month based on the value at the time of payment. The fee is deducted from the fund's income, and any amount that exceeds the income for the month is waived.
Redeeming sharesShares of BTC-TRADING-PT can be redeemed for shares of LTC-GLOBAL. Please contact John Galt Asset Management at the email address above, or by sending a PM to "John Galt" on the LitecoinTalk forums (
http://forum.litecoin.net/) or "JohnGalt" (note the missing space) on the BitcoinTalk forums.
- Shares are redeemed in multiples of 10. Each 10 shares of BTC-TRADING-PT is redeemed for one share of LTC-GLOBAL. The minimum number of BTC-TRADING-PT shares that can be redeemed is 100. The person redeeming the shares must have an account on the LTC-GLOBAL exchange in order to receive the LTC-GLOBAL shares.
- There is a redemption fee of 1% based on the value of the shares redeemed, payable in BTC or LTC to John Galt Asset Management.
- The LTC-GLOBAL shares are transferred as soon as the BTC-TRADING-PT shares have been transferred and the fee has been paid.
Depositing shares- 10 shares of BTC-TRADING-PT are issued for each share of LTC-GLOBAL. The minimum number of LTC-GLOBAL shares is 10.
- There is a redemption fee of 1% based on the value of the shares deposited, payable in BTC or LTC to John Galt Asset Management.
- The BTC-TRADING-PT shares are transferred to the depositor as soon as the LTC-GLOBAL shares have been transferred and the fee has been paid. The depositor must have an account on the BTC-TC exchange in order to receive the shares.
Current Financial InformationDetailed information about the financial state of the fund, including a description of the assets, the number of shares issued, and the NAV, can be found in this spreadsheet:
https://docs.google.com/spreadsheet/ccc?key=0Am3m7aRNI-JbdElvTTc5Vmg3bUh2WDAwc2tsLU1JcEEThe fund's assets can be viewed on this page:
https://litecoinglobal.com/portfolio/gbw4If the fund closesJohn Galt reserves the right to close the fund for any reason after giving 30 days notice. The management fee is waived during this period. All assets of the fund, including undistributed dividends, will be distributed to shareholders after the end of the 30 day period.
Shareholders can choose how to receive the distribution:
1. Multiples of 10 shares of the fund can be exchanged for the shares of LTC-GLOBAL that they represent. There is no minimum and no fee in this case.
2. All remaining shares of LTC-GLOBAL will be sold and the proceeds will be distributed to the remaining fund shares as a final dividend.
Acting as a Market MakerJohn Galt intends to act as a market maker in order to improve liquidity by posting buy and sell orders simultaneously. In general, the bids and asks will be priced at the LTC-GLOBAL highest bid and lowest ask prices (approximately); however, the prices will be no closer than +/-5% of their average in order to reduce price and currency fluctuation risk and to avoid disrupting normal trading.
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