A leading blockchain asset management platform, Invictus Capital, has recently announced its new fund, the Invictus Bitcoin Alpha Fund (IBA). The fund's primary objective is to outperform Bitcoin in the long term, making it an attractive investment opportunity for HODLers. Running in alignment with the changing financial landscape, Invictus Capital is offering a different approach to Bitcoin investment and traditional asset management.
Pioneers in blockchain asset management
With the move to decentralisation being at the top of the global financial revolution, traditional asset management is becoming outdated. And as new and existing technology evolves across the global financial industry, companies strive to create new value, while finding solutions to problems that emerge from new systems.
Digital asset management requires transparency, and above all, security. And while interconnectivity is fundamental for true global cooperation, it also leaves businesses and investors open to a myriad of external (and internal) risks. Rather than being constrained by a centralised system that includes unnecessary admin fees, intermediaries, and a lack of transparency, blockchain technology provides a solution that has radically transformed the nature of asset management. -
Daniel Schwartzkopff, the CEO of Invictus Capital, cites transparency and collaboration as the core values behind the asset management platform. With the rapid global advancement of digital tokenized crypto funds, players in the space, such as Invictus Capital, are providing value to anyone interested in finding new ways to invest in cryptocurrencies.
Introducing the Invictus Bitcoin Alpha Fund
Following the launch of IBA on the 13th August, Invictus capital reached almost half a million dollars in early subscriptions in less than a month. The Bitcoin Alpha Fund is one of a total of seven tokenized funds that Invictus Capital has successfully launched. In 2017, Invictus Capital was the first to create a tokenized cryptocurrency index fund, Crypto20, shortly followed by Hyperion, the world’s first tokenized venture capital fund in 2018.
Invictus’s fund offerings seek to benefit investors across the globe, through their application of blockchain technology to their investment strategy. With strategies that offer both downside protection and yield, IBA is available to investors for no minimum investment amount. The innovative product aims to outperform Bitcoin by utilising options and lending strategies that offer downside protection and yield. Invictus Capital places emphasis on their proprietary lending software, which generates sufficient return to offset the cost of purchasing a put option with a strike price 10% below the spot price at the beginning of the month. It should be noted that no active trading of Bitcoin is involved, with the Fund maintaining 1x long exposure to this cryptocurrency throughout.
A powerful addition to an investor’s portfolio
The IBA fund is ideal for investors who want to hold Bitcoin long-term with a significantly decreased downside risk, and enhanced returns. The fund provides an opportunity for investors to diversify their portfolio, and with Bitcoins returns exhibiting low correlation compared to most traditional asset classes, this is an investment strategy that is ideal for long-term Bitcoin holders.
It is worth noting that Bitcoin’s low market capitalisation means that a small amount of investment capital can result in an outsized return. This investment strategy has huge upside potential when compared to traditional financial assets such as stocks or bonds.
Ultimately, the main benefit of blockchain asset management platforms is that they allow investors to invest in an asset that has the potential to provide staggering returns, while allowing advanced investment strategies to be implemented on your behalf - in this case being covered in the case of downside market shocks.
IBA strategy and key features
Where digital asset management is concerned, Invictus places utmost importance in the security and resiliency of their transactional data. Since there is a single source of truth, and transactions performed on a blockchain are immutable, there is an unchangeable record.
Along with the value that Bitcoin offers, three key mechanisms allow Invictus Capital to achieve its desired return profile: capital drawdown protection, yield generation through lending activities, and the sale of an out-of-the-money call option.
Investment into IBA can be made with the cryptocurrencies Bitcoin, Ethereum, Tether, TrueUSD, and fiat, with no annual management fee and only performance fees for outperformance of the Fund’s Bitcoin benchmark. While long-term investment is envisioned, investors are of course able to redeem their tokens in USDT at any point in time through the investor portal. All investments received before 22:00 are issued tokens at 11:00 UTC the day following investment.
Even with the many advantages that blockchain technology presents to the financial market, its adoption has been slow. The lack of market familiarity with the technology has a large part to play in this. Looking further forward, it is clear that large-scale adoption of blockchain technology in the financial industry is undeniable. With forward-thinking funds such as Invictus Bitcoin Alpha creating value for investors, it is clear that those who seek to challenge and disrupt traditional forms of investment will be key players in the evolution of long-term investment management.
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