The Pearl Fund Launches $500M Bitcoin Investment Vehicle That Eliminates Capital Gains Taxes

The Pearl Fund has launched a $500 million Bitcoin investment fund (Pearl BTC) that allows accredited investors to completely eliminate capital gains taxes after holding their Bitcoin investment for 10 years.

The Pearl Fund has launched a $500 million Bitcoin investment fund (Pearl BTC) that allows accredited investors to completely eliminate capital gains taxes after holding their Bitcoin investment for 10 years.

“Bitcoin’s biggest problem is capital gains tax. We’ve solved that,” said Brian P. Phillips, Managing Partner at The Pearl Fund and a Forbes-ranked top 10 Opportunity Zone investor.

This fund marks a first in the U.S.—a fully SEC-compliant, institutional-grade Bitcoin vehicle that leverages federal Opportunity Zone (OZ) law to bypass long-term capital gains taxes entirely. Investors who roll over recent capital gains into the Pearl Bitcoin Fund can defer taxes until 2026 and, if they hold the investment for at least 10 years, exit completely tax-free.

The fund targets accredited investors with a minimum investment of $250,000 and is structured around a straightforward “buy and hold” strategy. Assets are held securely through institutional-grade custodians, with public wallet transparency and monthly withdrawal access.

The Pearl Bitcoin Fund is further backed by key partnerships with Fidelity Investments, Morgan Stanley, and Dykema—bringing trusted institutional expertise, legal strength, and operational integrity to its infrastructure.

Unlike other Bitcoin investment vehicles such as the popular Bitcoin ETFs, the Pearl BTC fund aims to differentiate itself by not only offering long-term tax-free growth but also preserving investor exit flexibility.

“Pearl Bitcoin Fund creates access to attractive tax benefits while maximizing investment exit controls in the hands of its investors rather than the Fund manager,” added Paul Saint-Pierre, Chief Compliance Officer.

Additional perks include no change in tax basis for inherited investments, striving to become a strategic tool for generational wealth transfer.

“This isn’t just another fund—it’s potentially a game-changer for serious Bitcoin investors looking to build generational wealth,” said Phillips.

Time is a factor—this opportunity hinges on the federal Opportunity Zone program, which is currently scheduled to sunset at the end of tax year 2026. Investors must act within 180 days of realizing capital gains to qualify.

“This could be the last chance for investors to combine Bitcoin’s growth with federal tax-free treatment,” Phillips noted.