Canadian Fund Hodls Mostly Cash rather than Bitcoin
Rivemont Investments’ Rivemont Crypto Fund only had nine percent of its assets in bitcoin as of July 13, 2018, with the rest, a whopping 91 percent, in Canadian dollars. For the record, the Rivemont Crypto Fund’s assets amount to C$3 million ($2.3 million).
Investors Could Return if Bitcoin Price Rises
The company launched the Rivemont Crypto Fund on December 14, 2017, with an aim to attract qualified Canadian investors. It is, at the moment, the only actively managed cryptocurrency fund in Canada. However, the staggering percentage of fiat currency versus cryptocurrency might cast some doubt as to the extent to which the fund focuses on digital assets.
The Canadian group revealed the latest information on its Facebook page as part of its weekly update.
Martin Lalonde, the fund’s president and portfolio manager, explained that the crypto market isn’t really in the right place at the moment and that people are waiting to see what will come out of the current situation.
“I would say that the cryptocurrency market right now is not really in a bull market, so people are waiting to see if it’s going down further,” he told Bloomberg.
Lalond said he’s monitoring bitcoin’s 30-day movements to check if there are any clear indications of long-term trends. He expects clients will come back in swarms the moment bitcoin’s price increases.
Lalond himself put more than half of the fund’s assets into bitcoin (BTC) and ether (ETH) on July 4, when bitcoin crossed the technical indicator. After it crossed again on July 10, he moved it back into cash.
The Rivemont Crypto Fund: Understand the Risks
Four days after Rivemont established the fund, bitcoin hit an intraday peak of $19,511. However, since that period, it has lost two-thirds of its value. The Rivemont Crypto Fund has also lost ten percent between March and June versus a 32 percent plunge in bitcoin price during that period.
The fund offers a wide range of cryptocurrencies in its portfolio: bitcoin, ether, litecoin (LTC), ripple (XRP), bitcoin cash (BCH), and ethereum classic (ETC), with a promise to add more after the approval from the regulators.
If investing with the Rivemont Crypto Fund, interested parties need to have a good risk tolerance in search of a high potential return. If a client wishes to diversify their investment portfolio with an asset having a low correlation to traditional asset classes, the fund says you’ve come to the right place.
According to those behind the scenes, investing in cryptocurrencies has its advantages. The most important is that the potential returns by far exceed those that more traditional funds offer assuming you can stomach the risk.
Martin Lalond founded Rivemont Investments in January 2010, and the company launched the Rivemont Crypto Fund at bitcoin’s peak in December 2017. The fund immediately received the authorization to trade bitcoin and ether, becoming the first Canadian fund to trade a virtual asset other than bitcoin. In February 2018, the fund obtained the permission to trade bitcoin cash, ethereum classic, litecoin, and ripple.