Perform in line with the cryptocurrency market, while reducing volatility.
- Invest in bitcoin and other cryptocurrencies, employing futures to hedge positions.
- Generate two uncorrelated return streams:
- Use Artificial Intelligence to exploit arbitrage opportunities caused by inefficiencies in cryptocurrency as an emerging traded asset.
- Earn fee-based revenues as a bitcoin market maker (liquidity provider). Strategy In Detail
Strategy in Detail
80%-100% - Cryptocurrencies
(Bitcoin - 40%-100% )
(Other cryptocurrencies - 0%-50%)
- Actively manage the portfolio, initially over-weighted in bitcoin, leveraging Artificial Intelligence, Machine Learning, and other proprietary tools.
- Utilize bitcoin futures contracts traded on the CME (the world’s largest futures exchange) to hedge and liquidate various cryptocurrency positions.
0-20% - Arbitrage
- Exploit daily pricing discrepancies across cryptocurrency exchanges and between various cryptocurrencies, which historically have fluctuated between 25 and 50 BPS.
- Use proprietary algorithms (e.g., timely Artificial Intelligent Inferencing, Deep Learning, and clustered systems) to monitor and trade across global cryptocurrency exchanges.
- Augment data analytic intelligence and AI by leveraging four years of banking and cryptocurrency exchange relationships.
0-20% - Market Maker (fee-based revenues)
- Opportunistically use core bitcoin holding to provide liquidity in exchange for 10-50 BPS per day in fees.
- Provide liquidity by leveraging growing personal network of thousands of cryptocurrency investors.