Pearl Fund launches $500 million Bitcoin fund with zero capital gains tax
The Pearl Fund has launched a $500 million Bitcoin Investment Fund (Pearl BTC), which allows approved investors to completely eliminate capital gains tax after holding their Bitcoin investment for 10 years.
“The biggest problem with Bitcoin is the capital gains tax. We’ve solved that problem,” said Brian P. Phillips, managing partner of Pearl Fund and a Forbes top 10 opportunity zone investor.
The fund marks the first in the U.S. — an institutional Bitcoin vehicle that is fully SEC-compliant, the tool that utilizes federal opportunity zone (OZ) laws to completely bypass long-term capital gains taxes. Investors pushing recent capital gains to Pearl Bitcoin Fund can delay taxes until 2026, completely tax-free if they hold investments that have been invested for at least 10 years.
The fund aims to accredited investors with a minimum investment of $250,000 and revolves around a direct “buy and hold” strategy structure. The assets are securely held through the custodian of the institution, with public wallet transparency and monthly withdrawal access.
The Pearl Bitcoin Foundation is backed by key partnerships with Fidelity Investment, Morgan Stanley and Dykema, which develops trusted institutional expertise, legal strength and operational integrity of infrastructure.
Unlike other Bitcoin investment vehicles, such as popular Bitcoin ETFs, Pearl BTC funds can distinguish themselves not only by providing long-term tax-free growth, but also retain investors’ export flexibility.
“The Pearl Bitcoin Foundation creates attractive tax benefits while maximizing investors rather than fund managers to achieve control of investment exits,” added Paul Saint-Pierre, chief compliance officer.
Additional benefits include the unchanged tax base of inherited investments, and efforts to become a strategic tool for generations of wealth transfer.
“It’s not just another fund, it could be a game-changer for serious bitcoin investors looking to build wealth from generation to generation,” Phillips said.
Time is a factor – this opportunity depends on the federal opportunity zone program, which is currently scheduled to end in the 2026 tax year. Investors must act within 180 days of realizing that capital gains are eligible.
“This could be the last chance for investors to combine Bitcoin growth with federal tax-free treatment,” Phillips noted.
