The Cryptofund is a hedge fund focused on investing in cryptocurrencies with a long-term perspective. The Cryptofund is a natural expansion of the Rhea concept, which will give our token another use. Also, as the founding team is most proficient in trading and portfolio management, the Cryptofund will have a definitive edge over other funds.
The launch of the fund is greatly dependent on the success of the ICO (check the milestone map). If we raise 100%, it will launch shortly after the Rhea platform. Anything below tier VII would delay the launch. Due to the uncertainty around the timeline, we have prioritized other aspects of Rhea, so we will provide only the rough outline.
The following table contains a description of the Cryptofund’s characteristics. All of the details will be available post-ICO once we are able to pinpoint a launch date.
|Investment horizon||The fund will be long-term oriented, as we firmly believe it is more beneficial than short-term trading. Identifying and taking advantage of opportunities backed by sound fundamental evidence will be the focus of the Cryptofund.|
|Return objectives||The Cryptofund will have a relative return objective – to outperform the Rhea Crypto20 Index.|
|Weights||Although we would like to provide exact weights in the WhitePaper, it would be irresponsible of us to do so. When the Cryptofund is close to opening, the market’s structure, sentiment and status quo could be very different. Shortly before the launch, the Rhea team will publish a detailed prospectus of the fund.|
|A 1.5 and 10 structure: 1.5% management fee and a 10% incentive fee. The former will be charged on assets under management. The latter will be calculated on gains net of management fees and will feature a soft hurdle rate, which will be based on the Crypto20 Index.|
|Dividend payment||A significant portion of profits will be distributed to investors in the form of a dividend. The exact numbers will be provided in the prospectus.|
|Minimum investment||We do not want to make our fund exclusively for accredited investors. The minimum investment will be a small amount and it will be dependent on the Rhea token’s price prior to the fund’s launch.|
|Lock-up period||Again, we want to distinguish ourselves from typical hedge funds, so the lock-up period will be 3 months.|
|Accountability||As Rhea is committed to full transparency, we will publish short weekly updates and 3- month full reports. In addition, all of our positions will be updated on our website for investors to see. Also, non-investors would have access to the fund’s historical performance, comparisons, graphs, statistics etc.|
Currently there are several cryptocurrency funds in the world, but are exclusively opened to accredited investors. While the concept of crypto-funds is still in its early days, we believe the market’s 2 flaws discussed earlier are dragging down the capabilities of funds to consistently yield solid returns. Moreover, the large amount of knowledge required to understand the mechanics of any given currency makes it very hard to construct a well-diversified portfolio without allocating a lot of time for research. For this reason, we intend to assemble a crypto-analytics team with a long-term, valueseeking orientation. In addition, not trading short-term noise will let us to focus on the real winners – the ones that are here to stay. Lastly, the structure presented in Table 2 holds many advantages – see Table 3 below.
|Experience in trading||We have extensive experience in equity and cryptocurrency trading – we consider this aspect one of our best skills. By spotting trends and taking advantage of temporary mispricing, we will do our best to outperform the Crypto20 Index.|
|Market knowledge||Also, active involvement in the market has helped us gain specific knowledge in cryptocurrency technicalities. Moreover, we will create a fundamental ranking system for cryptocurrencies, which will be used for trading decisions.|
|Low fees||The fee structure described earlier is cheaper than the typical 2 and 20 for hedge funds.|
|Non-binding lock-up period||By having a short lock-up period, investors can quickly decide to get their Rhea out of the fund.|
|We intend to make the minimum investment as low as possible, so that investors of all levels of accreditation can invest in the Cryptofund. Opening up to retail investors does not by any means decrease the quality of your investment in the fund.|
|Tax purposes||As of this moment, many countries do not have specific regulations for cryptocurrencies. Therefore, receiving a dividend from the Cryptofund will not be subject to income tax.|
|Full accountability||By constantly keeping investors and followers up to date with performance, past and
future decisions, and advanced statistics, we will achieve full transparency.
As discussed earlier, the Cryptofund’s future relies greatly on the success of the ICO. As a capital-intensive project, reaching Tier VII on the milestone map is crucial to cover the costs. Anything less than Tier VII means that, we have to postpone it further in time. Also, if the ICO is filled at 100%, here is what we envision:
- Firstly, the Cryptofund’s launch scheduled on 01.08.2018 shortly after more advanced features introduced in the options trading platform.
- Secondly, Shortly after its launch, we will start working on creating funds with different characteristics and we will offer them by 01.03.2019. Also, the ultimate goal is to offer a range of specialized funds with the potential of giving investors access to very exotic portfolios, better suited to their investment needs.
- Also, the launch of additional indices will come with automated replication strategies. Moreover, these will permit investors to obtain a portfolio that tracks a given cryptocurrency index that we offer.