Newsletter April 2020
Make-It Capital Fund | Actively Managed Certificate II.
Market News & Commentary | Roadmap
Make-It Capital Fund (the “Fund”)
The Fund has seen its first light on February 21, 2020. News headlines from the NY Times on that day read:
- As China Fights the Coronavirus, Some Say It Has Gone Too Far,
- Morgan Stanley to Buy E-Trade, Linking Wall Street and Main Street, and
- Why Sanders Will Probably Win the Nomination.
- As we all know, the Coronavirus has completely shattered the world economy and what is much worse, many individuals and families all over the planet. Unprecedented is the only word coming to our minds.
- Morgan Stanley has lost some US$30bn in market capitalization since,
- and Bernie Sanders, well …?
The S&P 500 was at 3,337.75, Crude Oil at US$ 55.38, Gold at US$ 1,644.60, and Bitcoin at US$ 9,686.44. Since then, the S&P has gone on an unprecedented rollercoaster, however still losing 14%, Oil shed an amazing 73%, Gold gained 3%, while Bitcoin lost 26%.
Such an economic environment was hardly an ideal starting point for the Fund. However, by employing some of our investment principles, we managed to outperform our benchmark, Bitcoin, by 11%. And we are currently just employing 2 of the magic 5 pillars of our 360-degree approach to blockchain / cryptocurrency investing. We very much look forward to including the remaining 3 pillars once the world normalizes again.
Actively Managed Certificate II. (the “AMC2”)
We are in the final stages of launching our second Certificate with a Swiss ISIN. The AMC2 is our secure margin-lending product. We lend USD to the best cryptocurrency exchanges allowing for margin trading. However, this is a pure USD product, we never exchange into any cryptocurrencies. The loans are totally secured by margin calls, i.e. when a trade where our loan has been placed turns south, the trader will be automatically called before our loan is being touched and the loan including interest will consequently be automatically returned to us. We employ proprietary AI to source the markets for the best lending returns. Average loan terms are 2-10 days.
This product generates passive income to the order of 6-10% p.a. with daily liquidity. The margin lending markets are very liquid. As such, the AMC2 currently does not foresee an upper limit to its capacity.
Should you be interested in receiving more information, please contact: email@example.com
Market News & Commentary
Bitcoin Halving: The much anticipated Bitcoin Halving is expected to occur in 3,184 block or an expected 22 days. Why is everybody in the crypto scene so excited about this and what is the Halving anyway?
In the Bitcoin network, user transactions are grouped in blocks and recorded to a digital public ledger called a blockchain. Miners are in charge of this task, and receive a mining reward in the form of bitcoins for each block recorded.
The amount of bitcoins rewarded for each block decreases with time: it is halved every 4 years. This event, the moment when the mining reward is divided by 2, is commonly called “Bitcoin halving”.
When Bitcoin was created in 2009 as a reaction to the 2008 banking crisis, the initial reward was 50 BTC. In November 2012, it dropped to 25 BTC after the first halving. The second halving took place in July 2016, decreasing the reward to 12.5 BTC. Now, in 22 days this reward will be cut again to 6.25 BTC.
So what will happen to the Bitcoin price this time around? When examining the log scale rainbow chart curtesy of Holger from the BlockChainCenter, we can derive that the price did not move immediately following prior Halving events. However, in the ensuing months prices multiplied many times over.
Moreover, following above rainbow chart, we can see that Bitcoin currently hovers at “Basically a Fire Sale”. Adding both catalysts together, we remain very positive as to the future development of Bitcoin, selected other cryptocurrencies, and the Make-It Capital Fund for 2020.
We are constantly evolving and developing new products. Here is a rough outline of our milestones and corresponding timeline.