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Capital Markets

In a financial markets panic, investors may find the answer in strong drink

Digital asset manager Wave Financial may have found just the right moment to launch its whiskey fund.

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With financial markets crashing, investors selling anything there’s a bid for to raise cash, big and small corporations wondering how to cope with lost revenues and so many people worrying about their health and how to make payments, we probably all need a stiff drink right now.

Over-indulging is never the answer though. What investors need is an alternative, stable asset with steady returns that are not correlated to bonds, equities or mainstream commodities like oil and gold.

Is it conceivable to get both at once?

On March 18, Los Angeles-based registered investment adviser Wave Financial launched Wave Kentucky Whiskey 2020 Digital Fund, the first tokenized US whiskey barrel fund available to investors.

This will invest in up to 25,000 barrels of premium Kentucky bourbon distilled by one of the state’s up-and-coming premium producers, Wilderness Trail, which are laid to age.

Value creation

The ageing process is crucial to value creation in American whiskey. A barrel of bourbon might cost under $1,000 to produce, mainly thanks to high-cost capital equipment. 

The initial distilling process is quick, perhaps four or five days. Stored alcohol then responds to rising daytime temperatures, infusing into the wood of its barrels before coming out again in the cool of night to develop its flavour over many months.


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