By Jon de Wet, Chief Investment Officer and Co-founder, Zerocap
Apply here for the Zerocap Bitcoin Trust
As Volitaire said, “Paper money eventually returns to its intrinsic value – zero.” Over these past 12 months traditional institutional investors have started acknowledging the same.
It’s times like these that require uncorrelated, diversified assets to protect against increasing correlation in traditional asset classes. Bitcoin provides that hedge in its purest form, and has been one of the best performing assets of all-time.
The Zerocap Bitcoin Trust is the first step in adding crypto assets to a robust portfolio, built for the future.
We are Zerocap.
Zerocap is much more than an investment platform. We’re developing asset management products to power a new type of investment landscape, connecting the old world to the new. Through the security, breadth and simplicity of Zerocap’s platform our solution bridges traditional finance with the future of finance.
Since its inception, the Zerocap ecosystem has evolved to become a full-service offering – from trading to custody, advisory, insurance and funds management – providing exposure to leading cryptocurrency investments. The platform operates within regulatory frameworks and enables trusted and secure access for investors.
And whilst we’re not claiming to know how to build the perfect future, we do know that if we bring the right people to the table, we can create a future characterised by independence, value and growth. Behind our offering is a team of experts with a diverse background across cryptocurrency, institutional banking and funds management.
We’ve always worked to stay ahead of the curve.
Our business expanded from an Over-The-Counter (OTC) spot desk and Proprietary Trading Firm to provide institutional level products soon after the Covid-19 pandemic hit in March 2020. The thesis was that bitcoin would provide a hedge against quantitative easing – the increase in money supply by central banks to cushion the economy in the face of economic headwinds. Since this crisis began we’ve seen larger scale adoption of cryptocurrency across institutions such as JP Morgan, Goldman Sachs, publicly listed companies, and even sovereign nations in the case of El Salvador. Crypto assets have truly become an asset class of their own.
This new paradigm is changing the way we think about wealth generation and asset protection, and has led to a deeper dive into how we do business. Our purpose has shifted in many ways; from buying and selling cryptocurrency, to focusing on providing the most secure, trusted and elegant full-service crypto asset wealth platform available. Fintech, powered by market-leading asset management products. Our push into this space has taken our business to the next level. We have two ex-Directors of Deutsche Bank in our trading team. We’ve developed a spectrum of products that cater to the varying risk profiles of our customers, with the added ability to create bespoke, unique structured products to control volatility. We’ve also been fortunate to secure an equity investment into Zerocap from Australia’s premier Family Office, The Victor Smorgon Group, who share our vision for the future of finance and wealth management.
Introducing The Zerocap Bitcoin Trust.
The Zerocap Bitcoin Trust is the first of a suite of funds that we are launching to cater to our institutional investor base. It provides pure bitcoin exposure through a regulated unit trust, and is covered by our market-leading insurance underwritten by Lloyds of London. The fund has been designed to track the price of bitcoin, without having to purchase, hold and secure the underlying bitcoin. The entire fund is backed by spot bitcoin, and provides an access point for investors looking for unitised bitcoin ownership backed by industry-leading insured custody and asset managers.
The subsequent round of funds launching throughout 2021 are aimed at varying risk appetites and diversification needs. For wealth advisors and institutions looking for the beta advantages of bitcoin without the volatility, all the way through to actively managed on-chain long/short strategies that use machine learning to source returns in rising or falling markets. It’s an exciting time for the regulated side of our business, and complements our Wealth Portal for customers also choosing to hold underlying cryptocurrency, and earn yield through staking and proprietary trading strategies.
What are the current macro conditions telling us? With the world’s vaccination rates rising, and talk of moderate tapering coming out of the US Fed, we could be entering a period of economic recovery. It’s a bizarre world where equity and property prices are at all time highs in many places, yet we’ll be entering a period of “economic recovery”. It’s times like these that require uncorrelated, diversified assets to protect against increasing correlation in traditional asset classes. Bitcoin provides that hedge in its purest form, and has been one of the best performing assets of all-time.
At Zerocap we are committed to bringing you unique investment opportunities to grow and protect your wealth. The Zerocap Bitcoin Trust is the first step to add digital assets into a robust portfolio, built for the coming decade.
Will you join us and be a part of the future of finance?
The Zerocap Bitcoin Trust investment opportunity is available via Zerocap’s investment platform. If you would like to access further details about The Bitcoin Trust you can request a copy of the IM.
If you would like to become a client of Zerocap head to our platform to sign-up.
About the author
Jon de Wet is co-founder and Chief Investment Officer at Zerocap. Jon drives investment strategy and capital management, portfolio design and liquidity provisioning for Zerocap’s digital asset execution and yield strategies. After strategy roles including ANZ Bank, Jon worked as a trader at T4T Capital managing leveraged FX positions based on macroeconomic newsflow and market structure, event-driven macroeconomic analysis, discretionary trading strategy development and actively trading the firm’s proprietary book of capital with an absolute return strategy.
Before co-founding Zerocap, Jon also founded Vesper Capital, a risk-parity proprietary trading firm focused on leveraged FX and commodities strategies. Vesper Capital ran a portfolio of diversified trading strategies, ultimately building latency sensitive algorithmic trading into its approach – pulling economic data points and executing against aggregated liquidity across multiple venues. His approach is top-down – understand the big drivers and paradigm shifts in investor sentiment to see the road ahead.
This article is for educational purposes only. This article expresses the views of the authors at a point in time, which may change in the future with no obligation on Zerocap or the author to publicly update these views.