RIADeFi
Refusal file · other

Why Ketju rejected Mantle Index Four Fund (MI4)

Memo v1Published by Ketju Research

A registry memo, published verbatim and versioned. Superseded versions are recorded, never edited away. A rejection is a judgment for Ketju's client base and thesis, not a universal safety claim. Not investment, legal, tax, or compliance advice.

The memo

REJECTED ON ACCESS AND MISCLASSIFICATION RISK. MI4 is not a tokenized treasury or money-market product despite sitting in this backlog's issuer/RWA queue — it is a crypto-native, market-cap-weighted digital-asset index fund holding BTC, ETH, and SOL with a staking and restaking yield overlay (Mantle's mETH, Bybit's bbSOL, Ethena's sUSDe), explicitly marketed as "the crypto equivalent to the S&P 500." Confusing this for a stable-NAV treasury product would misstate the risk to a client. Independent of that classification issue, the fund is a BVI limited partnership restricted to non-US persons under Regulation S or US accredited investors under Regulation D, with a $100,000 minimum subscription — the same access bar already applied to BUIDL, USYC, Ondo Global Markets, and Anemoy/JTRSY in this registry. On-chain figures also show only 6 holders against a roughly $117.6M tracked balance, an extreme concentration this review treats as a real counterparty and liquidity consideration distinct from smart-contract risk.

What would reopen the file

  • A US-eligible offering opens to this registry's target client population
  • The on-chain tracked balance reconciles with the fund's reported total AUM, or the discrepancy is explained from a primary source
  • Holder concentration diversifies meaningfully beyond the current 6 holders
  • This entry's crypto-index classification is confirmed to remain distinct from any stable-NAV treasury product comparison in advisor-facing materials

Facts on file

Verdict
Rejected
Exposure
other
Chains examined
Mantle
Instruments
MI4
Memo version
v1
Reviewed
Next review

← All published refusals