YFSOL Special Opportunity:
DIVERSIFIED BLOCKCHAIN

If IBM Is Your Competitor, Your Service Must Be Solid

A big year ahead for blockchain

Let’s start with a story.

Our headquarters are in Cork, Ireland. Last month, a technology company called Horizon8 formally opened its offices here. Horizon8 is half owned by State Street (one of the world’s top three asset management companies). Horizon8 is also one of world’s leading blockchain solutions providers. One of its competitors in the blockchain space is IBM.

Let these two things settle in your mind:

  1. State Street (top three global asset manager)
  2. IBM (top ten global IT company)

Doesn’t that tell you that blockchain is serious business?

But what about crypto?

  • As of 1st January 2020, cryptocurrencies are regulated in Germany
  • In the US, the first bitcoin settled futures were approved in 2019 (Bakkt on the NYSE and  EricX on the NASDAQ)
  • Former crypto critics JP Morgan have launched their own internal cryptocurrrency
  • Facebook announced its global cryptocurrency Libra
  • ICE, Fidelity, and Boers Stuttgart (among others) launched institutional trading and custody services
  • The number of bitcoin ATMs worldwide reached 6,000

All of these are evidence that cryptocurrencies are becoming increasingly mainstream.

Blockchain is here to stay—as the technology driving many business solutions, not just digital money. So what are the prospects for investors?

Key considerations for 2020:

#1 — While the US Federal Reserve didn’t sign off on ETFs proposed by Bitwise, Wilshire and VanEck/SolidX, this could change in 2020, as a more robust market infrastructure around crypto assets might alleviate the Fed’s concerns regarding safety issues and market manipulation. The successful creation of crypto ETFs are expected to be a huge driver of investment flows going forward.

#2 — Around May, the rate at which new bitcoin is produced will halve (the ‘Halvening’). What would happen if the rate at which a finite commodity could be produced halved and demand stayed the same? It’s price would probably go up. We can’t say with certainty bitcoin’s price will go up, but there is an expectation that it will. Certainty? Absolutely not. But it’s a situation worth considering, IF you are the right kind of investor.

IF. (We mentioned already that not all investments are suitable for all investors.)

Our take: Investing in blockchain and cryptocurrencies isn’t right for everyone. But we believe the sector is reaching maturity and there is something promising brewing in the near future that could lead to healthy profits on investments made now. The cryptocurrency market is still 60% below its 2017 high, which means there is an opportunity for significant growth and now could be a terrific opportunity to invest in a diversified blockchain portfolio for the right type of investor.

We have found what we believe to be a sensible, diversified blockchain investment opportunity. Find out more below:

6 Elements of a Sensible Blockchain Investment Strategy

1: INDEX TRACKING

Invest in a basket of multiple cryptocurrencies so that you reduce your exposure to volatility. This is the crypto equivalent of investing in a fund made up of the FTSE 100 companies.

2: INVEST IN COMPANIES THAT MINE CRYPTOCURRENCIES

Mining is the creation of cryptocurrency units. Put very simply, to create new bitcoins, a miner has to solve a complex puzzle before someone else does. Their reward is new bitcoin. Miners are part of the infrastructure that supports many cryptocurrencies.

3: INVEST IN COMPANIES WHO USE BLOCKCHAIN TO SOLVE PROBLEMS

A blockchain is a decentralised ledger. In other words, the ledger is hosted and maintained in multiple places at once. Technology companies use blockchain to solve real-world problems, including fraud prevention and transparent business lending schemes.

4: INVEST IN INITIAL COIN OFFERINGS (ICOs) AND SECURITY TOKEN OFFERINGS (STOs)

You can buy in early when a cryptocurrency is launched. Health warning: ICOs and STOs are where huge profits can be made. With huge potential profits come huge potential risks. That goes for any investment in a start-up, which is what an ICO or STO essentially is.

5: TRADE CRYPTOCURRENCIES

You can buy and sell cryptocurrencies. But you really have to know what you’re doing. It is very easy to lose a lot of money very quickly. Cryptocurrency values are notoriously volatile.

6: LENDING

Just like you can make money from lending regular currencies, you can do the same with cryptocurrencies.

The Final Piece of the Puzzle:
A CREDIBLE FUND

A fund that runs a multifaceted investment strategy isn’t enough. You need to be sure that your money is going to a credible fund.

We think a credible fund would have these characteristics:

  • offer the most diverse and holistic route into the blockchain technology and cryptocurrency market.
  • have a team of experts with a great deal of experience in the fund and asset management industry. (Preferably with big names like Credit Suisse, Citibank, Societe General, UBS, Julius Baer).
  • apply proven risk management techniques and customise these to the crypto asset class. 
  • be managed by a fund manager who is registered with a credible regulator (CSSF in Luxembourg, for instance) and has an independent administrator, bank and auditor.
  • have a good track record, for instance generating a profit during 2018’s bear market.

There are more, but these are some of the things we’d look for…

THIS INVESTMENT STRATEGY HAS ALL OF THE ABOVE:

So here’s what we’ve done. We’ve partnered with Block Asset Management to bring you YFSOL Special Opportunity 7: Blockchain Multi-Strategy Investing.

You’ve probably figured out what this investment opportunity does. It’s an investment strategy that sets your money to work doing items 1-6 on the list above. It’s available as a USD and a EUR investment.

This is a unique fund, unlike any other in the world—a truly innovative strategy.

In the first 7 months of 2019, the Blockchain Multi-strategy Fund returned (hold on to your pants) 56.17% and 60.03% in the USD and EUR class share respectively.

In July alone, the fund grew by 22.23% and 24.46% (USD and EUR respectively)—a month when all major cryptocurrencies lost value.

If you’ve ever been curious about investing in cryptocurrencies but have been wary, this could be the fund for you. Get in touch with us to find out more.

Listen to a Special Podcast Episode about this Opportunity

In this episode of Swallow the Anchor, Roger talks with Manuel de Luque Muntaner and Kevin Ballard of Block Asset Management about their diversified blockchain investment strategy.

Manuel and Kevin highlight how the crypto space is increasingly mature and that institutional investors are taking it very seriously. They are honest about the risks involved in investing in crypto and discuss how they weed out the wheat from the chaff when looking at what they include in their fund.

If you have any interest at all in cryptocurrencies or blockchain, this is a must-listen episode.

YSO 7: Diversified Blockchain in a nutshell

Your money will be invested in the Blockchain Multi-Strategies Fund, run by Block Asset Management, a blockchain technology investment company based in Luxembourg.

The minimum investment is USD or EUR 10,000 for existing Polaris clients and USD or EUR 25,000 for new ones. New clients can spread their initial USD or EUR 25,000 over any investment opportunity we have available at the time, as long as USD or EUR 10,000 goes into YSO 7. There is no upper limit.

The investment window for YSO 7: Diversified Blockchain closes on 20th March, 2020. So don’t delay if you are interested. You’ve seen what the single month returns could be…

To participate, you will need to set up a YFSOL Polaris account if you don’t already have one. Don’t worry. It’s simple and you only need to do it once. We’ll help you.

Details

Structure:
You will be investing in the Blockchain Multi-Strategies Fund, run by Block Asset Management through YFSOL’s Polaris platform. The portfolio is actively managed and spread across the following areas:

  • Index tracking
  • Cash
  • ICOs
  • Mining
  • Lending
  • Trading
  • Blockchain Listed Companies

Valuations:
Monthly.


Redemptions:
Monthly.


Base Currency:
USD or EUR.


Minimum Investment:
The minimum investment is USD or EUR 10,000 for existing Polaris clients and USD or EUR 25,000 for new ones. New clients can spread their initial USD or EUR 25,000 over any investment opportunity we have available at the time, as long as USD or EUR 10,000 goes into YSO 6. There is no upper limit.


Investment Window Closes:
20th March, 2020

Your Next Step

If investing in YSO 6 Diversified Blockchain excites you, get in touch with Clive or Teresa today. They’ll guide you through the process.

Get in touch today.