Generating alpha in crypto with proprietary trading mechanisms
The fund is an actively managed fund comprised of a diversified portfolio of crypto assets and digital assets. To increase the funds assets, generate alpha, and produce a return, we employ proprietary trading. We offer investors the opportunity to invest in this new asset class.
We are long term investors in the crypto assets and believe fiat might be a thing of the past. We have our own money in our fund and monitor our performance in the number of crypto assets, not fiat currencies. We take all performance fees in crypto assets not fiat.
Contact UsThe explosive growth of cryptocurrency
With over 1,500 cryptocurrencies trading on 7,500+ exchanges, the total market cap exceeds over $500B worldwide.
Fast, but consolidated market
Bitcoin (BTC) dominates the global market capitalization with between 35% and 45% of the total market cap. Ethereum (ETH) and XRP (XRP) make up the second and third respective market cap dominances.
See the latest market capitalizations and pricing for all cryptocurrencies at CoinMarketCap.
Arbitrage Strategy
Crypto Asset Systems (CAS) increases the value of a cryptocurrency portfolio by using arbitrage strategies between exchanges to gain coins/tokens through market inefficiencies. This has no direct correlation to fiat currency. Profit and loss is assessed in coins/tokens, not fiat currencies.
Proprietary Valuation Models
Proprietary valuation models choose optimal portfolio weight.
HODL Strategy
Investors that have Cryptocurrencies or Blockchain-based tokens (cryptos) invested in a holding strategy that are looking to increase the number coins/tokens.
CAS does reiterate that invested cryptos be considered longer term holdings, as principle is not necessarily at risk, but used to take advantage of market inefficiencies.
CAS Index Fund
Investment is pooled with other investors to hold many cryptos. Alpha is generated by arbitrage. Positives and risks of index funds apply. Cryptos are determined by CAS using proprietary valuation models as an added value to investors. Investment size determines amount of ownership of fund/profit.
Example: If fund has a net worth of 5 BTC and you invest 10 BTC, you would own 66.67% of the fund/profits.
Investor Driven Index fund
Investors can dictate coins/pairs and allocation of those coins. Alpha is generated by arbitrage. Positives and risks of index funds apply.
Example: Investor A is 40% of the fund, he wants to do X-Y pair but other 60% Investors B-E want to do Y-Z and Z-X. We look at largest opportunity and weighted votes to determine priority pairs to trade.
“Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies.1
CAS, via a fully automated and proprietary software system, finds the market (exchange) with the lowest price and buys. The software finds the market (exchange) with the highest price and sells capturing the “spread.”
How does it happen?
Inefficiencies + Dislocation = Arbitrage Opportunity
If difference in price (“spread”) is greater than all trading and transfer fees, a trade is made.
Increasing cycles, exchanges and number of pairs coincides with increasing profit
CAS has developed a software suite
Interested to learn more about investing?