Key Takeaways
- • The Pearl Fund launched the Pearl Bitcoin Fund (Pearl BTC), a $500 million vehicle that it says eliminates capital gains tax on Bitcoin investments, according to a Business Wire press release dated May 6, 2025.
- • The fund is open exclusively to accredited investors with a minimum investment of $250,000 and is structured around Opportunity Zone (OZ) tax benefits.
- • Investors can reinvest recently realized capital gains into the fund and defer taxes until 2026, then withdraw growth tax-free after a 10-year hold, per the firm.
- • Management is pitching urgency because the federal Opportunity Zone program is scheduled to sunset at the end of 2026, a timing point that depends on pending federal tax legislation.
- • The tax treatment and benefits are the firm's own claims in a promotional release and have not been independently verified in this source.
Summary
The Pearl Fund, a New York-based investment firm that describes itself as the originator of the Opportunity Zone Business (OZB) fund structure, announced the launch of the Pearl Bitcoin Fund (Pearl BTC), a $500 million investment vehicle, according to a Business Wire release. The firm says the fund eliminates capital gains tax on Bitcoin investments by combining Opportunity Zone tax advantages with Bitcoin exposure. The fund is led by Managing Partner Brian P. Phillips, whom the release describes as a Forbes-ranked top 10 Opportunity Zone investor.
According to the release, investors who have recently realized capital gains can invest those gains in the fund and defer taxes until 2026. After a 10-year hold, investors may withdraw investment growth tax-free, which the firm says no other Bitcoin investment option offers, including the newly launched Bitcoin ETFs. The release states that the fund is available exclusively to accredited investors with a minimum investment of $250,000, and that it pursues a buy-and-hold strategy. It also cites zero capital gains tax through tax year 2047 after the 10-year hold requirement and generational wealth transfer benefits with no change in tax basis for inherited investments.
Paul Saint-Pierre, Chief Compliance Officer at The Pearl Fund, said the structure lets investors maximize exit control rather than ceding it to the fund manager. He also argued that investors should act rather than wait for pending federal tax legislation, given that the Opportunity Zone program is scheduled to sunset at the end of 2026. The release states that Bitcoin holdings are audited and held with institutional custodians, and that the fund maintains a regulatory compliance program. Phillips, who has invested in Bitcoin since 2013, described the fund as a potential game-changer for serious Bitcoin investors. The release does not disclose fees, audit firms, custodians, or regulatory review status, and the tax claims are presented by the issuer without independent confirmation.
According to the release, investors who have recently realized capital gains can invest those gains in the fund and defer taxes until 2026. After a 10-year hold, investors may withdraw investment growth tax-free, which the firm says no other Bitcoin investment option offers, including the newly launched Bitcoin ETFs. The release states that the fund is available exclusively to accredited investors with a minimum investment of $250,000, and that it pursues a buy-and-hold strategy. It also cites zero capital gains tax through tax year 2047 after the 10-year hold requirement and generational wealth transfer benefits with no change in tax basis for inherited investments.
Paul Saint-Pierre, Chief Compliance Officer at The Pearl Fund, said the structure lets investors maximize exit control rather than ceding it to the fund manager. He also argued that investors should act rather than wait for pending federal tax legislation, given that the Opportunity Zone program is scheduled to sunset at the end of 2026. The release states that Bitcoin holdings are audited and held with institutional custodians, and that the fund maintains a regulatory compliance program. Phillips, who has invested in Bitcoin since 2013, described the fund as a potential game-changer for serious Bitcoin investors. The release does not disclose fees, audit firms, custodians, or regulatory review status, and the tax claims are presented by the issuer without independent confirmation.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.