Reports show that Bitcoin investments have yielded a positive return on investments in the last five years. The growth can only be commendable, with a compounded annual growth rate (CAGR) of 108% in 5 years between Dec. 31, 2016, and Feb. 28, 2022. In comparison, Crypto Fund has registered a CAGR of 133% in the same period, according to Off the Chain Capital.
According to the fund’s CEO and CIO- Brian Estes, the mission of the fintech firm is to provide an ideal investment platform. They aim to allow endowment funds, high net worth individuals, and corporates to diversify their wealth portfolios in the crypto space.
Bitcoin (BTC) is the most popular and well-known digital asset that you can purchase freely on crypto exchanges. It can be overtraded, making it susceptible to market shocks caused by external factors like the US SEC and UK FCA policies. Other assets such as ETH, BCH, XRP, Monero, and Dash Coin become less volatile and ideal for long or short selling. Creating a Digital asset fund that offers stability attracts positive market sentiments, which can sustain a high CAGR.
Off The Chain Crypto Fund Initiatives
The Off the Chain Crypto fund also supports investors to venture into Blockchain projects. Next-generation such as Silvergate Bank- Crypto friendly banker and Mike Novogratz’s Galaxy Digital are mispriced and undervalued. Hence, investors can hedge risks by venturing into promising projects with cutting-edge solutions.
Other undervalued digital assets that the tech firm is onboarding include Binance (BNB) and more. With a $399 million aggregate fund under management from 200 limited partners, there is room for growth. According to Estes, the fund has the capacity for an additional $200 million in the short term. The minimum investment is $1 million for prospective investors with no upper cap.
Off the Chain is set to roll out Bitcoin’s artificial intelligent algorithmic trading fund solution. This service will enable investors to analyze market trends in real-time.
Bitcoin Is Still Preferred
Despite the higher returns, Bitcoin ETF is still popular, having attracted $180 million of net inflows as of April 1st, 2022. However, the inflows are decreasing in the short run after peaking at $244 million in the third week of March 2022.
Despite the current global trends, investing in Crypto and other digital assets is still a high-yielding venture. Traditional financial instruments like the S&P 500 index have been stagnant and volatile. In comparison, the Off the Chain Crypto fund outperformed the traditional fund by 3,653% in the review period. The crypto fund is also not influenced by price movements in the broad market index.
The emergence of Crypto funds under blockchain management is the future for wealth diversification and maximization. Distributed ledgers and AI-powered algorithmic trading solutions will be an ideal feature in a market where transparency is compulsory.