The Rivemont Crypto Fund is a cryptocurrency based fund management company that holds about 91 percent of its assets in the form of cash. The company issued a statement saying that this was based on uncertainty about the market trajectories in the near term.
There was a biweekly report that was published by the company on Facebook. Here the company revealed that, as on July 13th, they had about 3 million in Canadian dollars in fiat currency, which constitutes about 91 percent of their assets. The remaining is held in the form of bitcoin. Rivemont, which is a crypto fund based out of Quebec, has assets that dominate in fiat currency, though it trades, as per its legal operations in five different kinds of cryptocurrencies which are Litecoin, Bitcoin Cash, Ethereum, XRP and Ethereum Classic.
This, however, is a current stance that the firm has taken, apparently based on the market outlook at the moment since the firm has had more holdings in cryptocurrencies when technicals were bullish for this firm. The firm states that, in the previous financial circle, half of the assets of the fund have dominated in Ethereum and Bitcoin. The firm states that it has taken is the current stance as per paths of investing discipline to safeguard its assets. It would wait to see a profitable point to enter in the future, which would bring in more profits for their investors and safeguard their existing profits.
Rivemont pursues different investing strategies and this flight back to fiat currencies is not an isolated occurrence. However, this stance has been predominant in the last two cycles where is funds have been parked more in capital cash than in cryptocurrency.
The firm stated that it is necessary to observe which process is becoming less or more successful. This is with reference to the moving average of bitcoin’s market price over the last 30 days. As per the current situation, major exposure might be too risky. Rivemont was launched last year in December. This was days before the Bitcoin price reached the peak of the year, nearing $20,000. The firm, however, missed out on an eye-popping single returns about 25,000 percent that was experienced by some top hedge funds in cryptocurrency around this time. The recent downturn, however, has not soured out the long-term prospects of the market for the firm.
Indeed, Bitcoin price has been seeing a bullish run this July and many customers are opting to use the best Bitcoin wallet services to make the best of the situation and invest in the cryptocurrency as the trends seem to be going up for its valuation. However, this rally run is still below what was seen by the cryptocurrency investors in the month of December in 2017.
The firm even issued a recent report stating that it is wrong to think that cryptocurrencies are running out of steam and might be a bubble. The opposite is taking place and that is what one needs to look out for. Rivemont’s portfolio manager and president, Martin Lalonde has stated that the firm remains optimistic that the bitcoin price would increase and become triple the high it reached last year within the coming years. The firm has a bullish stance at the moment and it is expected that the trajectory would be going up through the near term rise is uncertain. However, the bull market trend is yet to set in more firmly and that is what people are waiting for.
A case in point is the return of the hedge funds which work on Bitcoin and other cryptocurrencies. These firms won big in December 2017, some with 25000% gains, such as the Pantera Bitcoin Fund. This fund was one of the firsts to have opened and dedicated its operations to virtual currencies. The letter that it sent its investors after its eye-popping returns were posted was life-altering for its investors as well.
The price of Bitcoin skyrocketed along with others at the end of last year which nearly reached $20,000. There were other hedge funds that also posted great returns, such as 148 percent by a hedge fund tracker while others also posted returns on an annual scale of 250 percent last year.
However, as seen from the cautious approach of the Rivemont Crypto Fund, one cannot be too careful in investing in cryptocurrencies, especially when it is the money of investors that need to be protected and grown and kept well away from the downside of the volatile market.