Rivemont Crypto Fund
Rivemont Crypto Fund
The Rivemont Crypto Fund, launched on December 11th 2017, is aimed at Canadian qualified investors and will invest in the emerging and highly volatile cryptocurrency market. The Fund received all the required persmissions from the Quebec and Ontario regulators (AMF/OSC).
The Rivemont Crypto Fund intends to first invest in Bitcoin using futures contracts trading on the CBOE and CME markets.
We have selected the brokers and the asset custodians who will allow us to invest directly in cryptocurrencies like Bitcoin and Ethereum, and eventually in Bitcoin Cash, Ethereum Classic, Litecoin and Ripple. These cryptocurrencies will be added progressively following the approval (no guarantee) of their addition by our regulators (AMF/OSC).
The cryptocurrencies have enabled investors to achieve exceptional returns since their inception in 2010. The fund’s objective is to take advantage of the development of blockchain technology by identifying the most promising cryptocurrencies. Cryptocurrencies are analyzed using a fundamental approach coupled with the application of trend following rules at the time of purchase and sale.
The Rivemont Crypto Fund is aimed at investors with a good risk tolerance looking for the potential of a high return. This fund is also suited for any investor wishing to diversify their portfolio with an asset having a low correlation to traditional asset classes. The fund can be included in registered (RRSP, TFSA) and locked-in (LIRA) accounts.
What is a Cryptocurrency?
While the answer to this question could fill a book, the short answer is that it is a purely electronic currency not created or regulated by any central authority. Basically, a cryptocurrency is a ledger containing all the transactions ever made using the coin. Instead of being held exclusively by a central authority such as a bank, the ledger, known as a “blockchain,” is distributed among all the actors in the network. It is fully public, immutable and protected by air-tight security.
In addition to decentralizing monetary exchanges, cryptocurrencies are much faster and more affordable than use of the traditional banking system.
Advantages of Investing in Cryptocurrencies
While past performance is no guarantee of future results, the main advantage of investing in cryptocurrencies is that the potential returns far exceed those offered by more traditional funds. Cryptocurrencies are a standalone asset type with no correlation to other asset classes.
While cryptocurrencies have yielded dazzling returns since their creation, their market cap barely exceeds $550 billion. There is every reason to believe that the industry’s heyday is yet to come. The Rivemont Crypto Fund aims to capitalize on this current market opportunity in order to maximize returns for investors.
Past Performance – The Bitcoin Example
Bitcoin was the first cryptocurrency and certainly still the best known. How has it done since its introduction in 2010? Let’s say you bought $100 worth of Bitcoins on January 1, 2011 and held on to them. How much would they be worth today? $500? $10,000? $100,000?
The answer is staggering: $100 invested in 2011 would be worth more than $1.2 million today! And there is no end to the rise in sight. Here is how your investment of 100$ would have been at the end of each year to today :
- 2011 : 1 573 $
- 2012 : 4 503 $
- 2013 : 252 497 $
- 2014 : 106 565 $
- 2015 : 137 835 $
- 2016 : 212 738 $
So far, 2017 has been another year of stunning performance. The Bitcoin has set record after record and is now worth much more than an ounce of gold. Your initial investment would have soared to nearly $3.7 million.
The Rivemont Crypto Fund Philosophy
Initially, the fund will invest in Bitcoin futures traded on the CBOE and the CME markets. The next step will be to add Bitcoin and Ethereum directly. The third step, conditional on the prior approval of the authorities, will be the addition of cryptocurrencies in the top 10 in terms of their capitalization of the entire market, such as the Ripple or the Litecoin (target early 2018).
Finally, when the industry will offer institutional and security solutions, our medium-term goal is to include in the fund:
- Several emerging altcoins with strong fundamental bases (NEO, DASH, OMG, XMR, BAT …).
- Possibility of investing in ICOs (Initial Coin Offering), a procedure similar to IPOs on the stock market.
- Investment in tokens, i.e. cryptocurrencies that do not target the financial market.
- Possibility of arbitrage to take advantage of the spreads between the different brokers used.