Currencies / Assets / DAPPs / DAOs / Contracts
Launched in February 2017 Digital Beta is a high risk fund that will aim to get exposure in a new category of digital assets. These include digital currencies, distributed application tokens, decentralized autonomous organizations, smart contracts, and related assets.
With the invention of Bitcoin in 2009, decentralized blockchain technologies are redefining the way people and business interact. This marks a paradigm shift towards a singular global economy unencumbered by artificial friction in trade. An attractive investment oportunity exists to capitalize on the disruption, digitization, and disintermediation of centralized services.
In relation to the size of the opportunity and the rapid growth rates associated with uptake of disruptive technologies, Digital Beta will target annualized returns in excess of 200% per year.
“Blockchains will change everything.”
The fund will be partially activist to ensure growth and adoption of investments. Longer holding periods will allow access to emergent but currently illiquid investments that provide asymmetric risk return profiles. Fundamental analysis and due diligence will not only be done in the areas of cybersecurity, finances, governance, and opportunity, but also through code review of technologies where available. Where applicable, the fund may also provide market making and lending services to provide liquidity and arbitrage market flows.
Investment advisory firm needham & co, has calculated that the total retail global market for retail payments will reach $67.5 trillion in 2020 and even if Bitcoin captures a tiny percentage share of this market, that will be a strong catalyst for increasing both the demand for and price of the cryptocurrency. The firm estimates bitcoin is likely to capture 0.28 percent of the retail payments market.
It was noted by Needham & Co. analyst Spencer Bogart that, “…we see value in Bitcoin as a “digital gold” and as a payment network that is enabling a global, open, permissionless financial system… Over the past 20 years alone the United States dollar has lost 53 percent of its value, the British pound has lost 47 percent, the euro has lost 40 percent, and the Australian dollar has lost 64 percent.
Shuttle fund is designed for short term capital appreciation via asset allocation ahead of major inflows and is structured like a positive carry CDS on soverign debt.
“Blockchains are the biggest innovation since the Internet itself.”
Digital β fund strategy includes eclectic investments into meta and digital assets with a fundamental bias. The investment thesis includes front running capital allocation into an emergent asset class that provides a unique hedge against systematic macro-economic risk. This risk is severely mispriced due to experimental and direct monetary policy intervention.
The fund portfolio will be constructed to serve as a cheap call option against a global financial meltdown and should be included in a well diversified portfolio. In the event of a loss of confidence in central banks and national currencies, this portfolio should significantly outperform.
The fund also looks to profit on emergent trend of digitization in areas of capital formation, exchange, and governance. With the gradual progression of society from physical to digital worlds, we expect a positive correlation in the adoption of our portfolio meta and digital assets.
“I hope to be part of a democratisation that helps put more control & power back in the hands of the everyday citizen”
THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT.
RISK DISCLOSURE STATEMENT
YOU SHOULD CAREFULLY CONSIDER WHETHER YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN A COMMODITY POOL. IN SO DOING, YOU SHOULD BE AWARE THAT COMMODITY INTEREST TRADING CAN QUICKLY LEAD TO LARGE LOSSES AS WELL AS GAINS. SUCH TRADING LOSSES CAN SHARPLY REDUCE THE NET ASSET VALUE OF THE POOL AND CONSEQUENTLY THE VALUE OF YOUR INTEREST IN THE POOL. IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT YOUR ABILITY TO WITHDRAW YOUR PARTICIPATION IN THE POOL. FURTHER, COMMODITY POOLS MAY BE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT, AND ADVISORY AND BROKERAGE FEES. IT MAY BE NECESSARY FOR THOSE POOLS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THE DISCLOSURE DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF EACH EXPENSE TO BE CHARGED THIS POOL AND A STATEMENT OF THE PERCENTAGE RETURN NECESSARY TO BREAK EVEN, THAT IS, TO RECOVER THE AMOUNT OF YOUR INITIAL INVESTMENT. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER FACTORS NECESSARY TO EVALUATE YOUR PARTICIPATION IN THIS COMMODITY POOL. THEREFORE, BEFORE YOU DECIDE TO PARTICIPATE IN THIS COMMODITY POOL, YOU SHOULD CAREFULLY STUDY THE DISCLOSURE DOCUMENT, INCLUDING A DESCRIPTION OF THE PRINCIPAL RISK FACTORS OF THIS INVESTMENT.
YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY POOL MAY TRADE FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS ON MARKETS LOCATED OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET, MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION TO THE POOL AND ITS PARTICIPANTS. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE TRANSACTIONS FOR THE POOL MAY BE EFFECTED.
YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY POOL MAY ENGAGE IN OFF-EXCHANGE FOREIGN CURRENCY TRADING. SUCH TRADING IS NOT CONDUCTED IN THE INTERBANK MARKET. THE FUNDS THAT THE POOL USES FOR OFF-EXCHANGE FOREIGN CURRENCY TRADING WILL NOT RECEIVE THE SAME PROTECTIONS AS FUNDS USED TO MARGIN OR GUARANTEE EXCHANGE-TRADED FUTURES AND OPTION CONTRACTS. IF THE POOL DEPOSITS SUCH FUNDS WITH A COUNTERPARTY AND THAT COUNTERPARTY BECOMES INSOLVENT, THE POOL’S CLAIM FOR AMOUNTS DEPOSITED OR PROFITS EARNED ON TRANSACTIONS WITH THE COUNTERPARTY MAY NOT BE TREATED AS A COMMODITY CUSTOMER CLAIM FOR PURPOSES OF SUBCHAPTER IV OF CHAPTER 7 OF THE BANKRUPTCY CODE AND THE REGULATIONS THEREUNDER. THE POOL MAY BE A GENERAL CREDITOR AND ITS CLAIM MAY BE PAID, ALONG WITH THE CLAIMS OF OTHER GENERAL CREDITORS, FROM ANY MONIES STILL AVAILABLE AFTER PRIORITY CLAIMS ARE PAID. EVEN POOL FUNDS THAT THE COUNTERPARTY KEEPS SEPARATE FROM ITS OWN FUNDS MAY NOT BE SAFE FROM THE CLAIMS OF PRIORITY AND OTHER GENERAL CREDITORS.
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