WHY AN ALLOCATION TO CRYPTO ASSETS MAKES SENSE IN A MULTI-ASSET APPROACH
- Returns of crypto assets are uncorrelated to most other asset classes.
- Adds diversification and increases the risk/return profile.
- Just a small allocation to crypto assets creates substantial upside with minor downside risks on portfolio level.
- Comparable to an option on equities or an allocation to venture capital; in comparison to an option there is no decay in time value.
FUTURE ADOPTION WILL IMPACT PRICE
- Adoption today is low. These are the drivers for potential future adoption – and consequently potential price increases:
- Institutional money will enter the crypto asset markets on a large scale due to the diversification advantages.
- Use of crypto assets by individuals and businesses will increase, which is becoming apparent in emerging markets.
- Infrastructure and projects will become available and user-friendly, low-cost and superior to existing solutions.
- Industrial use cases of the blockchain will be implemented.
WHY A QUANTITATIVE APPROACH MAKES SENSE FOR BITCOIN / CRYPTO ASSETS
CRYPTO MARKETS ARE STILL VERY INEFFICIENT
- This results in high volatility and trends persisting over time in either direction: long and short.
- Automated trading systems respond well to these kinds of environments.
ADVANCED QUANTITATIVE APPROACH
- Trading methods that go beyond a purely trend following approach show a very promising return structure.
- The lack of automated and algorithmic trading allows for immediate profitable opportunities from the market inefficiencies.
- Systematic strategies are superior to human decision-making procedures in an environment of irrational and volatile markets.
THE ABSENCE OF VALUATION MODELS IS SUPPORTIVE
- The market is dominated by traders making trading decisions by monitoring price action.
- This increases the strength of trends and favours a quantitative approach.
WHY INVEST WITH US
Add diversification to your investment portfolio by investing in our crypto fund products with ease and transparency.
Subscriptions and redemptions can be initiated by an investor’s bank.
Institutional Level Products
We offer premier products for institutional investors, compliant with all criteria for professionally managed funds.
Our asset management, Crypto Fund AG, is the first regulated crypto asset manager for collective investments authorised by FINMA.
Crypto assets are stored at a regulated bank in Europe, ensuring professional standards of cryptographic and physical security as well as regulatory compliance.
The highly skilled and professional team has vast experience across various banking and finance sectors.
HOW WE DO IT
We take a traditional investment approach towards a new asset class. The products present an opportunity for investors from the traditional financial services sector to diversify their portfolios by allocating to the crypto asset market via a regulated asset manager.
All of our products are registered with regulators in their place of domicile, and are distributed only through licensed channels. Funds under management all employ reputable fund administrators, auditors, brokers and custodians. The funds do not self-custody any crypto assets; all assets are held with regulated third-party custodians.
CRYPTO MARKET INDEX 10
Our passive investment vehicles track the performance of the Crypto Market Index 10 (the “Index”), which is calculated and maintained by the Swiss company SIX. The objective of the Crypto Market Index 10 is to reliably measure the performance of the largest and most liquid crypto assets and tokens and provide an investable benchmark for this asset class.
In line with the Index, the CMI10 Tracker Funds are rebalanced quarterly and contain up to the ten largest crypto assets. The assets are weighted according to their market capitalization. The Index does not comprise of crypto assets aimed solely at providing anonymous payment services, crypto assets classified as securities, indexed crypto assets and pegged crypto assets. Further, crypto assets which cannot be safely stored in an institutional-grade storage solution are also excluded.
The rulebook of the Crypto Market Index 10 can be found on the SIX website.
THE ASSET MANAGEMENT TEAM
Get to know our team of highly experienced professionals. We believe that crypto assets will become an integral part of a balanced financial portfolio, and we are working to make it happen.