A New Way to Think About Wine Investment

Fine wine has always been admired for its scarcity, cultural prestige, and long-term value. Yet for most investors, the barriers are high. Success in the traditional model depended not only on deep knowledge, but also on relationships. Investors and collectors with the biggest budgets often received better access and more advice from private client managers, while smaller investors had little to none, often ending up with leftover allocations or several cases of sub-investment grade wine.

Closed-end fractional funds go part of the way to solve this by allowing pure investors to participate with smaller minimums (in the $000's), but liquidity is low and a track record of exits are few and far between.

SAVW changes the equation. By tracking the performance of the Liv-ex 1000, it offers a passive, diversified, and liquid entry point into fine wine. Access starts from as little as $100 and all investors, regardless of investment size, get the same return on investment, making what was once a gated asset class fair and open to a much wider audience.

How SAVW Works

SAVW is designed to mirror the fine wine market in a simple, efficient way:

• Benchmark: It follows the Liv-ex 1000, the broadest index of fine wine, covering a thousand wines across Bordeaux, Burgundy, Champagne, Tuscany, California, and beyond.
• Price Updates: Valuations are updated monthly as set by Liv-ex, reflecting the most current and accurate market price.
• Portfolio Adjustments: The structure is adjusted annually in accordance with the Liv-ex 1000’s rebalancing, ensuring accurate exposure to the market.
• Passive Strategy: There is no active speculation. The approach is designed to capture the performance of the market as a whole, without requiring investors to choose individual bottles or regions.

This structure takes the complexity out of wine investing, offering diversification and transparency without the need for constant management.

The Role of Custody

Every bottle represented in SAVW is stored with professional third-party custodians. Industry-wide storage facilities are used to preserve optimal conditions. Investors do not need to manage logistics, insurance, or verification themselves. Just as gold ETFs use vaults to hold their reserves, SAVW uses custodians to hold and protect the wines that back the product.

Legal Ownership Through Smart Contracts

A common flaw in earlier attempts to bring wine onto digital rails has been the absence of a clear legal link between the physical bottles and the digital tokens. Without that structure, ownership becomes uncertain and risky.

SAVW addresses this directly. An ERC-20 smart contract is used to create a legally recognised link between the digital instrument and the ownership of the underlying wines as a whole. Every token issued reflects verifiable ownership on the physical reserves held by the custodian. This alignment between law and technology ensures transparency, security, and confidence for investors.

Why It Matters for the Industry

SAVW does more than simplify access. It has the potential to reshape fine wine investment for the better:

• Accessibility: Participation starts at $100, eliminating the need for insider relationships or large, slow moving allocations to receive attention and advice. The structure also scales seamlessly. Whether an investor allocates $100 or $1m, they receive the same exposure, efficiency, and diversification across the fine wine market.
• Transparency: Smart contracts provide a verifiable link between digital ownership and physical reserves.
• Liquidity: SAVW creates a tradable structure that makes entering and exiting positions far more efficient.
• Stability: Broad exposure across regions and producers reduces the volatility tied to individual wines.

For the first time, investors at every level can access fine wine on equal terms.

A Foundation for the Future

Wine investment has always carried a tension between passion and prudence. SAVW is designed to eliminate this by offering a transparent, index-linked structure with accessible entry and exit points, it provides the foundation for a more inclusive and efficient market.

As valuations are updated monthly and the composition is rebalanced annually by Liv-ex, investors can focus on enjoying the wines they love, confident that their investment allocation is stable, diversified, and secure.

This is the shift fine wine has been waiting for: a bridge between centuries-old tradition and a new era of digital access. SAVW is not just an investment tool. It is a step toward a more open and liquid future for the entire fine wine market.