8 Dec, 23

The Bitcoin Discount Note – Defined Outcome Investing

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Zerocap

Zerocap

As the Bitcoin market continues to evolve, investors seek innovative ways to capitalise on its potential. The Bitcoin Discount Note offers a compelling opportunity for those with a neutral to positive outlook on Bitcoin over the next six months.

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What is the Bitcoin Discount Note?

The Bitcoin Discount Note is a Structured Product that allows investors to enter a long position in Bitcoin at a price lower than the current market value, contingent on specific conditions at expiry. The advantage of Structured Products is that they can provide more defined outcomes than buying the underlying asset. There are two key outcomes at expiry for the Bitcoin Discount Note – either buying BTC 10% below the current spot price, or earning up to 33% on your initial investment (in USD).

Investor Suitability

  • Ideal for investors with a stable to moderately bullish outlook on Bitcoin.
  • Less suited for those anticipating a major bull run or significant decline in BTC before the expiry date.
  • Maximum risk involves the initial investment amount.
  • WHOLESALE INVESTORS ONLY.

Example

Current BTC Market Price$42,000
Discount to Current Market Price10%
Purchase Price if below Cap Price$37,800
Cap Price (20% above Current Market Price)$50,400
Return if above Cap Price33%

Investment Terms

  • Minimum Investment: $50,000
  • Currency: USD
  • Expiry Date: 28 June 2024

Payoff at Maturity

1) If BTC is above $50,400 on 28 June 2024, investors earn a 33% return in USD.

2) If BTC is below $50,400, investors have the option to buy BTC at a 10% discount from its current price.

This investment strategy is an attractive option for those who believe in a neutral or steady growth of Bitcoin. It offers a unique blend of potential high returns and a strategic entry point.

Disclaimer

This material is issued by Zerocap Pty Ltd (Zerocap), a Corporate Authorised Representative (CAR: 001289130) of AFSL 340799. Material covering regulated financial products is issued to you on the basis that you qualify as a “Wholesale Investor” for the purposes of Sections 761GA and 708(10) of the Corporations Act 2001 (Cth) (Sophisticated/Wholesale Client). This material is intended solely for the information of the particular person to whom it was provided by Zerocap and should not be relied upon by any other person. The information contained in this material is general in nature and does not constitute advice, take into account the financial objectives or situation of an investor; nor a recommendation to deal. Any recipients of this material acknowledge and agree that they must conduct and have conducted their own due diligence investigation and have not relied upon any representations of Zerocap, its officers, employees, representatives or associates. Zerocap has not independently verified the information contained in this material. Zerocap assumes no responsibility for updating any information, views or opinions contained in this material or for correcting any error or omission which may become apparent after the material has been issued. Zerocap does not give any warranty as to the accuracy, reliability or completeness of advice or information which is contained in this material. Except insofar as liability under any statute cannot be excluded, Zerocap and its officers, employees, representatives or associates do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this material or any other person. This is a private communication and was not intended for public circulation or publication or for the use of any third party. This material must not be distributed or released in the United States. It may only be provided to persons who are outside the United States and are not acting for the account or benefit of, “US Persons” in connection with transactions that would be “offshore transactions” (as such terms are defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). This material does not, and is not intended to, constitute an offer or invitation in the United States, or in any other place or jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer or invitation. If you are not the intended recipient of this material, please notify Zerocap immediately and destroy all copies of this material, whether held in electronic or printed form or otherwise.
 Disclosure of Interest: Zerocap, its officers, employees, representatives and associates within the meaning of Chapter 7 of the Corporations Act may receive commissions and management fees from transactions involving securities referred to in this material (which its representatives may directly share) and may from time to time hold interests in the assets referred to in this material.  Investors should consider this material as only a single factor in making their investment decision.

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