The first digital asset fund 100% focused on monetising cryptocurrency volatility
- The Fund will seek to generate uncorrelated alpha via sophisticated derivative strategies that aim to benefit from cryptocurrencies’ inherent volatility and large price moves — both higher and lower
- Volatility is a key feature of the digital asset sector with realised volatility for bitcoin over the last month of 125%, significantly higher than any other liquid asset class
- The nascent digital asset option market has grown by approximately 25% month-on-month this year and DACM believes it provides compelling investment opportunities
- DAF Greeks builds upon the success of DACM’s DAF and DAF ICO funds which have both outperformed the digital asset market by over 150% year-to-date*
We are excited to announce the launch of DAF Greeks Fund Inc. (“DAF Greeks” or the “Fund”), our third fund available to institutional and family office investors. DAF Greeks is the first fund globally focused on targeting uncorrelated returns by trading digital asset volatility.
We believes this represents a significant market opportunity as bitcoin remains one of the most volatile assets globally trading with realised volatility of 103% year-to-date — for comparative purposes, over the same period, gold has volatility of 12%, crude oil with 30% and S&P500 with 12%.
One of the only constants in bitcoin markets, and the broader digital asset space, is high price volatility and high volatility of volatility. We have spent the past year developing and trading the DAF Greeks’ strategy, building comprehensive internal controls and proprietary datasets as well as finalising settlement and trading relationships with the leading counterparties globally.
We believe there is a compelling opportunity to utilise our team’s experience trading volatility strategies over traditional assets, together with our in-depth understanding of digital asset markets, to generate uncorrelated returns for investors. As the digital asset options market continues to mature we also expect other trading opportunities, over a broader range of cryptocurrencies, to emerge and continue to broaden the strategies that DAF Greeks can deploy.
As with DACM’s first two funds, Digital Asset Fund Inc. (“DAF”) and DAF ICO Fund Inc. (DAF ICO), we see the opportunities available when you have the right team investing in and trading nascent, rapidly-growing markets. With the digital asset options market currently growing at month-on-month rates in excess of 25% we think DAF Greeks provides another compelling opportunity with a strategy that should offer a unique return profile from bitcoin’s price moves — both higher and lower. Bitcoin is still in the early-stages of adoption and it’s trading ecosystem continues to develop rapidly — we expect elevated price volatility to persist for years to come.
DAF Greeks is a British Virgin Islands incorporated Business Company and builds upon the success of DAF and DAF ICO, which have both outperformed the digital asset market by over 150% year-to-date*.
DACM and of its managed funds (“DAF Funds”) are not providing any general advice or personal advice regarding any potential investment in any financial products. No consideration has been made of any specific person’s investment objectives, financial situation or needs. The provision of this information is not and should not be considered as a recommendation in relation to an investment in any entity or that an investment in any entity is a suitable investment for any specific person. Recipients should make their own enquiries and evaluations they consider appropriate to determine the suitability of any investment (including regarding their investment objectives, financial situation, and particular needs) and should seek all necessary financial, legal, tax and investment advice.
*As-at 30 June, 2019, DACM estimates and Bloomberg Galaxy Crypto Index