Diversification increases the efficiency of an investment portfolio, as demonstrated by Nobel Prize winner Harry Markowitz; this translates into higher returns and reduced risk. Cryptocurrencies and their underlying technology, the Blockchain, are an asset class completely uncorrelated to other investments, and as such represent the perfect addition to any portfolio.
To simplify Blockchain investing, we have created the Cryptos Fund, which tracks the CCi30Ⓡ, an index that covers the top 30 cryptocurrencies in the market. A turnkey solution for investors, the CCi30Ⓡ is comprised of currencies representing 90% of the global cryptocurrency market capitalization, meaning there is plenty of exposure to up-and-coming currencies with huge upside potential.
Cryptos Fund is a mutual fund registered in the Cayman Islands, subject to the regulation of the Cayman Islands Monetary Authority.
Because it is comprised of multiple components, an index that is well balanced (not overly exposed to one or a few components) tends to be less vulnerable to price volatility than an individual currency.
Historically, an index tends to have more attractive returns (i.e., a higher Sharpe ratio) than an individual currency. And it has been proven that index trackers historically achieve higher returns than actively managed portfolios in all asset classes. Not by chance, index funds, pioneered by John Bogle's Vanguard, have consistently outperformed all active managed funds.
Because the fund passively tracks the CCi30Ⓡ index, transaction costs and management fees are kept to a minimum. The annual management fee – 0.99% – makes it the least expensive fund in the sector. And of course no performance fees are charged.
Most investors don’t want to or are not allowed to buy and hold cryptocurrencies directly. The Cryptos Fund handles the purchase, sale and maintenance of assets, and the periodic rebalancing of the portfolio.
The Cryptos Fund is the brainchild of a team of leading academics, quants and security experts based in Zug, Switzerland, and Princeton, USA.
No single investor can realistically own multiple crypto currencies directly. It requires time and experience to buy different cryptocurrencies and keep the portfolio balanced. There are also technical and security requirements that only a dedicated professional structure can meet. Through the Cryptos Fund, anyone can gain exposure to a wide set of currencies, benefitting from interest in cryptos while reducing the volatility inherent in these currencies.
The Cryptos Fund is directed by three key individuals who are responsible for strategy, implementation and security:
Professor of Mathematics at Temple University and Regius Professor at St. Andrews University. Rivin is one of the world’s most respected mathematicians. Recognized for his skills at the intersection of mathematics and finance, Professor Rivin is responsible for the research and theoretical underpinnings of the Cryptos Fund.
Early adopter of e-currencies, experienced investor and trader with 20+ years track record, and internationally recognized provider of fiduciary services. Scevola is responsible for asset management and fund organization. As the investor n.1 in the fund, he has skin in the game.
Global security expert. Major, Marines Corps, decorated with the Bronze Star medal with Valor device; formerly a nuclear weapons security officer and later the military aide to the U.S. president charged with carrying the nuclear “football,” Zorn now consults with governments and corporations on cybersecurity and threat identification and neutralization. He is responsible for all security aspects of the fund.
Tracks the CCi30Ⓡ index of the 30 main cryptocurrencies. The portfolio is rebalanced monthly and its composition is recomputed quarterly, following the rules of the CCi30 index. Class A boasts a low management fee (0.99%), no performance fees, and requires a minimum investment of US$100,000. Redemptions can also be processed in Bitcoin and other cryptocurrencies.
Cryptos Fund (US) is our USA-based entity that mirrors the activity of Class A. It is available to US and non-US qualified investors. The minimum investment in this vehicle is $10,000.
Another way to invest is via a certificate listed on a stock exchange. The certificate invests in the Cryptos Fund so provides exposure to the same strategy but allows participation by investors or entities (e.g. certain institutional investors) who are not permitted or simply prefer not to buy the fund directly. The certificate is like any listed security in terms of its liquidity and transferability.
A fund devoted to cryptocurrencies requires maximum strength, military-level security. Jeff Zorn has used his vast knowledge and experience to provide the fund with an airtight security platform including:
All the assets reside on the blockchain, and can be accessed only via our strict security procedures, based on an improved version of the Glacier Protocol. This also allows for total transparency, realtime accounting and auditing. Counterparty risk has been neutralized.
Purpose-built, tamper-proof wallets designed specifically for digital currencies. These hardware wallets hold private keys and digital signatures in secure, offline devices, not connected to the Internet and thus secured against theft. The risk of hacking has been neutralized.
The physical devices are stored in multiple secret locations, protected with military-grade security. Redundancy, secrecy and security make our operations watertight. Physical risk has been neutralized.
Cryptos Fund has engaged in detailed business continuity and disaster recovery planning. We can’t say what’s going to happen to the world but if worst comes to worse, at least our fund – and your investment – will be safe.
These measures represent a level of security far greater than any investor realistically could achieve individually – and it is absolutely the level of security Cryptos Fund demands.
ISIN Code KYG2577B1077
Cusip Number G2577B 107
Bloomberg Ticker CRYPTOS KY
FATCA GIIN T53AV1.99999.SL.136
|ISIN Code KYG2577B1077||Cusip Number G2577B 107|
|Bloomberg Ticker CRYPTOS KY||FATCA GIIN T53AV1.99999.SL.136|