Further Asset Management and 3iQ Corp. have created a new USD Class II share class within their jointly managed Alpha Digital Fund, giving dollar-based participants access to long bitcoin exposure combined with active, alpha-seeking strategies.
Launched in June 2026, USD Class II is fully USD-denominated, allowing subscriptions and redemptions in dollars without requiring traders to hold or convert bitcoin directly. The structure pairs an absolute return strategy with a long BTC position, aiming to capture bitcoin’s scarcity while keeping allocation and reporting in USD.
Three-class structure to suit different risk profiles
With the launch of USD Class II, the Alpha Digital Fund, originally introduced in December 2025, now comprises three distinct share classes:
- USD Class I – targets digital asset alpha with limited bitcoin exposure, focusing on market-neutral returns across liquid strategies.
- USD Class II – combines long BTC exposure with alpha generation in USD terms, designed for those seeking both direct asset exposure and active management through a single dollar-based vehicle.
- BTC Class – maintains holdings and reporting in BTC, keeping a long BTC position throughout the investment period.
According to the firms, this structure allows portfolio managers to allocate across BTC and USD classes to calibrate risk and return more precisely, rather than relying on a single, directional bet on the market.
Response to sharp digital asset outflows
The product launch comes as institutional sentiment around digital assets remains sharply divided.
In the final two weeks of May 2026, digital asset investment products recorded more than USD 2.54 billion in outflows. Bitcoin-focused products saw USD 1.315 billion withdrawn in the last week of May alone, the largest weekly exit of the year.
These redemptions have reduced year-to-date net inflows into bitcoin products to roughly USD 2.6 billion, underscoring rising sensitivity to macroeconomic and geopolitical risks among major market participants.
Further and 3iQ’s new share class is positioned as a direct response: a dollar-denominated vehicle that maintains a core bitcoin position while seeking to offset volatility through non-directional, return-generating strategies.
Shift from binary bets to flexible allocation
The multi-class design of the Alpha Digital Fund is intended to give allocators more granular control. Rather than choosing between being “in” or “out” of the market, traders can:
- adopt a market-neutral approach via USD Class I during periods of heightened uncertainty;
- hold the underlying asset while seeking additional returns in BTC terms via the BTC Class; or
- combine long BTC exposure with USD-based alpha seeking through the new USD Class II.
This aligns with a broader pattern in recent flows, where participants have not exited the asset class entirely but have reallocated within it. During the same period of heavy bitcoin outflows, selective inflows into assets such as XRP and Solana indicated continued, but more targeted, engagement with digital assets.
Signal of growing demand for active, hybrid products
The launch of USD Class II highlights an expectation that demand will grow for tools capable of navigating more volatile conditions, moving beyond the passive, long-only products that have dominated since early 2024.
Active portfolio managers are likely to watch early allocations into USD Class II as an indicator of institutional appetite for hybrid strategies that combine direct exposure with sophisticated risk management and alpha targets. Performance of the fund’s actively managed components, relative to bitcoin’s own price moves over the coming weeks and months, may help shape the next phase of product development in the sector.
Background on 3iQ and Further
Founded in 2012, 3iQ focuses on institutional-grade digital asset products. The firm launched the first publicly listed bitcoin and ethereum exchange-traded products and incorporates staking strategies in its ethereum and solana offerings. 3iQ operates under Coincheck Group N.V., a NASDAQ-listed holding company based in the Netherlands.
Further Asset Management, headquartered in the UAE, provides digital asset and structured-product access for institutional clients globally. Its platform includes infrastructure for tokenization, settlement, and capital deployment across regulated markets.
Risk reminder
The announcement reiterated that digital asset allocations carry high risk, including the possibility of total loss. Participants were urged to conduct thorough due diligence and assess their own risk tolerance before committing capital to any digital asset strategy.
Explore how institutional capital views BTC exposure today in Toobit’s analysis: read more.
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