Key insights
- Permuto Capital is developing a new asset class (AC/DC) using blockchain technology to structure equity investments in companies like Microsoft and Broadcom. The SEC is reviewing the proposed exchange-traded products. If approved, this could create a new avenue for equity investment and potentially streamline the creation of new ETPs, offering a novel approach compared to existing structures. Early regulatory signals will be key.
I came across something interesting while researching new financial products and I'm genuinely curious if anyone else has been tracking Permuto Capital.
They're building what they're calling the AC/DC asset class - Asset Certificates and Dividend Certificates - which represents a fundamentally new way to structure equity investments. The company, founded by Gene Hoffman, has been working with the SEC's Division of Investment Management to create exchange-traded products starting with Microsoft and Broadcom trusts. These are being structured to fit within established ETP standards, meaning they're going through the same regulatory framework as existing exchange-traded products.
What caught my attention is that these products actually need a permissionless blockchain to work - they're using the Chia blockchain, which was built by Bram Cohen, the inventor of BitTorrent. This isn't just crypto marketing; the underlying protocol enables something that wasn't possible with traditional infrastructure.
From what I can tell, registration statements and exemptive relief filings should hit EDGAR in the coming weeks. The timeline after that is a 90-day SEC review, a 25-day notice period, and then a firm launch date. Once the first trusts get approved, adding new ones becomes much faster since they build on that groundwork.
I'm genuinely curious if anyone else has been following this. Does this structure seem viable compared to existing ETP offerings? Any thoughts on the investment angle here?