Arbitrx Crypto Asset Management “Coin Connect LP” (Ireland) plans to target small ticket size investors with what it says is the first index investment tied to cryptocurrencies.
Adrienne (CSO at Arbitrx): Nowadays bitcoin and other crypto assets are hot properties in the financial market place, everyone is talking about it and what to get involved as soon as they can. But everything which has lots of opportunities also has many drawbacks, the same case is with the crypto market, the volatility, unpredicted movements are some of its drawbacks, which are not easy to look after for a normal investor.
That's why we at Arbitrx come with the idea of "Crypto Funds" with the help of our experienced Fund Managers who are 24x7 dedicated to market movements, will look after your hard earn money, and help you create wealth.
Arbitrx Asset Management has launched what it says is the first cryptocurrency funds and is building out research and analysis, passive methodologies, and other infrastructure to attract small ticket size investors.
Adrienne, CSO at Arbitrx “Coin Connect LP”, says she wants to offer small investors interested in cryptocurrencies an alternative to high-fee hedge funds that now dominate the fledgling cryptocurrency sector. Arbitrx offers the index strategy in a partnership vehicle, as the Securities and Exchange Commission has not yet approved any initial coin offerings or crypto exchange-traded funds (ETF) and has not said whether it will ultimately approve any.
Adrienne, who was involved in some of the large scale real-estate, gold, and, bond market since long, says the business of cryptocurrency is still in the early stages and reminds her of exchange-traded funds 10 years ago when she first joined the then-nascent industry.
Over the years, she witnessed how small investors were cautious about investing in cryptocurrency before Arbitrx and others provided quality research, fund classifications, and data on the volume, liquidity, and other factors that influenced how cryptocurrency performed over time. Adrienne, who was managing large scale funds before joining Arbitrx, is hoping to provide the same kind of infrastructure for cryptocurrency funds, which potentially could offer high returns with low correlation to other asset classes.
"Right now, we're spending a lot of time educating potential investors about crypto and blockchain," says Adrienne. "Ultimately, the quality of the data contributes to a healthy ecosystem."
Arbitrx's first product, called the "ARBITD" Arbitrx Day Trading Fund & “ARBITB” Arbitrx Bitcoin Fund, offers exposure to currencies and charges a flat 2 percent fee. The fund is rebalanced daily & weekly and holds the top currencies weighted by market capitalization.
Adrienne hopes to expand into other crypto index products based on factors such as market capitalization and other technology trends as the asset class develops. Arbitrx also aims to lower fees as the cost of services, such as custody, declines over time.
Adrienne is also hoping to convert the fund to an ETF once the Government moves on cryptocurrencies.
Arbitrx is not the only firm building index crypto funds. Coinbase and Digital Asset have both said they will launch some form of crypto index funds.