It’s been a while since our last newsletter back in July. It has been quite frustrating on our side that many events delayed our original summer plans that were beyond our control.
Regarding the crypto markets, markets have been going down with some violent swings (both up and down) that have not been positive on our strategies which loves clear sustained trends on either directions.
Launch of BTC fund
After a lot of hiccups, we are now finally in the last innings for the long-awaited launch. To summarize quickly the steps we have been going through:
1. We filed the fund prospectus with AMF beginning of August.
2. We were asked to amend our filing by AMF on September which we did.
3. We finalized the contractual documentation with the custodian.
4. We opened the lines on our side with a broker that is necessary to allow the fund to transact.
5. We facilitated the negotiations between our custodian and our broker.
6. We had to find two distinct contributors for the fund seeding. Both of them are internal companies within the Napoleon Group. We had to undergo two specific KYC / AML processes for this.
7. We sent the funds on Friday 25th October to the custodian. The funds are now confirmed by them.
What remains now, and should happen earlier this week, is that the custodian signs off the contract with our broker. Later, our custodian opens the fund account with the broker and then transfers the relevant cash that we have sent to them to the broker so that we can begin trading.
The fund will be open before this process occurs and we will let you know this, but the trading itself will have to wait until the cash is with the broker. We understand this process seems far too painful, and you might wonder why we have not sent the funds directly to the broker ourselves.
Unfortunately, this is not the way things work in a regulated fund, and as a safeguard for investors, all movements of funds are controlled by the custodian, hence this long process.
Once the fund is officially launched and exposed to BTC, we will make a big European press release that we have prepared. All the journalists are already in the loop, waiting for the official greenlight before releasing the news. And from there on, we will be open for business!
As explained in the previous Newsletter, first payments to NPX token holders should occur two months from the launch — so in January 2020. We will also commit to a monthly reporting on AUM as well as the total amount of fees up for grab. For those having access to Bloomberg, you will be able to monitor AUM on a daily basis as we will have a dedicated ticker.
Once this is officially released, we will start the fundraising for the first DAF, which for the record will track our Long Only strategy on BTC. Once we have gathered the 300K EUR necessary for the launch we will start the paperwork. As it will be a repeat of the first fund, the process will be much quicker as a lot of negotiations have already been done. So be prepared for launch in Q1 2020 at the latest.
To claim your payments, we will make some evolution on the napoleonx.ai platform to track the registration of NPX tokens that will be mandatory to claim your payments. We will ask for some basic information on your side such as your reception address and to confirm some KYC elements. Furthermore, you will be prompted to sign a licensing agreement that corresponds to these payments. So stay tune in the next few weeks and prepare to register on our platform if that is not the case currently.
Just a little update on the revamping of our dedicated service to automatically execute our trading signals: the beta version of the software will be launched today with a selection of beta testers to search for bugs. Anyone who has already subscribed to our service will be prompted to switch to the new platform when it is officially launched.
A dedicated email will be sent to these users, with a nice gift for the early adopters. No, it’s not a mug! But you should like it even more. The new platform will have some dedicated free features for our NPX community so even if you are not willing to use our service, you might still want to register on this new platform.
New strategies development
I have been personally working on the development of a new shorter time frame strategy that is promising. We tried to do this on a daily time frame but could not find anything strong enough at this stage. So we had to increase trade frequency. This one is based on a 4h time horizon and will try to help curb the adverse effect of sideways markets on our initial daily strategies.
It will only be available for BTC at the beginning and potentially ETH soon after. Given the higher rebalancing time frame, this strategy should only be available on Napoleon Software as reasonably, nobody could trade manually such a strategy in a systematic manner.
We are working on the release of a few new items on our Telegram community. So don’t hesitate to participate there. Also, the Christmas mug contest should start soon.
An exciting time lies ahead, and we are finally able to make our full coming out. We really want to thank you for your support all along the way, and we will be pleased to repay you now in full with actual fee payments starting early next year. Let’s see if market conditions are a little more favourable to some of our strategies in order to maximize our added value to you.
Stephane IFRAH, Napoleon CEO