Overview
Leveraged Shark Fin Notes offer a cost-effective way to gain leverage, but at the cost of uncapped upside. Bitcoin Shark Fin Notes offer full participation in the upside of Bitcoin until its performance breaches an upper, knock out barrier, at which point, the investment matures early and the investor receives a positive return. When coupled with Anadara's Australian Taxation Office Product Ruling (PR2024/6), Leveraged Shark Fin Notes offer a tax-effective way of gaining leverage over Bitcoin.
Description
Bitcoin, the first decentralised cryptocurrency, has revolutionised the financial world since its inception in 2009. It has sparked a wave of innovation in digital currencies and blockchain technology, fundamentally altering the way people think about money, transactions, and the global financial system.
At the core of Bitcoin’s innovation is blockchain technology. A blockchain is a distributed ledger that records all transactions across a network of computers. Each block contains a list of transactions, and once a block is completed, it is added to the chain in a linear, chronological order. This structure ensures the integrity and security of the data, as altering any information on the blockchain would require the consensus of the entire network.
Bitcoin's supply is capped at 21 million coins, a feature designed to mimic the scarcity of precious metals like gold. This limited supply has contributed to the perception of Bitcoin as a “digital gold,” an asset that can act as a store of value and a hedge against inflation.
Bitcoin's performance has been characterised by significant growth, volatility, and increasing mainstream recognition. Its value is influenced by a complex interplay of market dynamics, regulatory developments, technological advancements, institutional adoption, macroeconomic trends, and public perception.
Leveraged Shark Fin Notes
Leveraged Shark Fin Notes offer a cost-effective way to gain leverage, but at the cost of uncapped upside. Shark Fin Notes provide full participation in the upside of an underlying asset until that asset hits the Knockout Barrier, at which point, the investment matures early, and the investor receives a positive return equal to the Rebate.
When coupled with Anadara's Australian Taxation Office Product Ruling (PR2024/6), Shark Fin Notes offer a tax-effective way of gaining leverage over Bitcoin.
For investors that believe Bitcoin will increase in value during the Investment Term, Anadara and Monochrome have partnered and structured a tax effective investment that offers 100% leveraged exposure to the Bitcoin via a limited recourse loan over 12 months.
Australian Tax Office Product Ruling PR 2024/6 has been issued in relation to the Master IM and confirms certain aspects of the tax treatment of an investment under the Master IM and Term Sheet IM.
Investors have the opportunity to receive either a Performance Coupon or Rebate based on the positive performance of Bitcoin during the investment term.
*This investment settles in US Dollars.
*Investors may choose to invest in USD or AUD – investors that choose to invest in AUD will be exposed to currency risk – any changes between AUD and USD will have an impact on returns.
*Please consult your Adviser before deciding to invest in this product.
| Feature | Monochrome Leveraged Bitcoin Notes |
|---|---|
| Reference Asset | Bitcoin (BTCUSD) |
| Performance Coupon | Yes, there is potential for a Performance Coupon at Maturity based on the positive performance of Bitcoin over the Investment Term. |
| Delivery Asset | The Monochrome Bitcoin ETF (IBTC) |
| Limited Recourse Loan | Yes – Investors borrow 100% of the Investment Amount. |
| Investment Term | 12 Months |
| Interest Rate on Loan | 8.25% per annum |
| Application Fee | 1.65% (including GST) |
| Total Investment Cost | 9.9% (Interest + Application Fee – payable upfront) |
| Minimum Investment | 100,000 Units at an issue price of US$1.00 per Unit |
| Minimum Amount Payable | $9,900 for a $100,00 loan and 100,000 Units |
| Knock Out Barrier | 150% |
| Barrier Rebate | 15% |
| Maximum Loss | Due to limited recourse nature of the loan, the maximum loss that can ever be incurred is the Total Investment Cost. There is no additional risk of loss in relation to the Loan Amount. |
| Settlement Currency | US Dollars (USD) |
| Taxation | Australian Taxation Office Product Ruling PR2024/6 has been issued in relation to the Master IM and confirms certain aspects of the tax treatment of an investment under this Term Sheet IM. A copy of the full product ruling is available to investors on request. |
Performance
| Date | Coupon Paid |
|---|---|
| TBC | N/A |
| TBC | N/A |
Key Dates
| Event | Date |
|---|---|
| Open Date | 3 February 2025 |
| Close Date | 20 February 2025 |
| Funds Due Date | 20 February 2025 |
| Commencement Date | 1 March 2025 or as soon as reasonably practicable |
| Maturity Date | 28 February 2026 – unless Knock Out Barrier is hit prior to this date. |
| Settlement Date | Maturity Date + 10 Business Days |
Offer Documents
This offer is for Wholesale Investors Only.
Investors interested in this investment must read the Master IM and Term Sheet IM in full before investing. Any advice given is general in nature only and does not consider your personal needs or objectives. Please consult your advisor before investing and read the following documents in full:
This investment is only available to Wholesale Investors. You will be required to provide a copy of your Wholesale Investor Certificate before your application is accepted. If you are not a Wholesale Investor, please do not apply for Units in this investment.
*Investors without an existing Anadara account that use the online application form will be required to verify their ID electronically using Green ID, and to upload a copy of their Wholesale Investor Certificate. If you have completed the ID process and verified your Wholesale Investor Status with Anadara within the last 18 months, you will not be required to verify again.
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