Asset management by Blockrise involves the professional management of your bitcoins based on a quantitative model. The investment methodology developed by Blockrise is called ‘Fundamentals’. This dedicated investment strategy focuses on utilising a bitcoin and a euro position within Blockrise's secure infrastructure.
The Fundamentals model is structured on the quantitative data of Bitcoin, along with blockchain properties and price movements. By comparing the estimated cost to mine one Bitcoin with the current market price, we can identify over- or undervaluations. This model allows us to proactively adjust the allocation between Bitcoin and Euros. The strategy is finely tuned to reduce volatility and realise interim gains, which are ultimately used to increase positions in Bitcoin.
Bitcoin was the first cryptocurrency introduced and has achieved the largest market capitalisation and adoption, resulting in broad acceptance and trust as a digital store-of-value and medium of exchange. Additionally, Bitcoin has pre-programmed properties, such as a limited supply and predictable inflation, contributing to it’s inherent value. Blockrise is convinced that these properties will ensure Bitcoin's strong position in the financial world.
Fundamentals aims to provide investors an entry into the crypto market, regardless of the current price. By properly balancing the allocations of bitcoin and Euros, one can always enter and exit. The Fundamentals model has several guiding principles:
Chief Executive Officer
Portfolio Manager
Portfolio diversification
Figure 1 shows the impact of our investment strategy ‘Fundamentals’ on a traditional investor portfolio composed of 60% equities and 40% bonds. Allocating capital to this strategy leads to an increase in both absolute and risk-adjusted returns. While the strategy comes with relatively higher volatility, the additional returns more than compensate for it.
Bitcoin exhibits a modest correlation with traditional asset classes, as explored in more detail in our research paper Fundamentals: the unique diversifier. This low correlation makes Bitcoin a valuable addition to enhance diversification within an investment portfolio.
Prone to inflation
The total supply of Bitcoin is fixed at 21 million. This scarcity makes Bitcoin an effective hedge against inflation and currency devaluation, which are affected by monetary expansion.
| Investment Strategies | 1 months | 3 months | year-to-date | 12 months | Since Sept 22 |
|---|---|---|---|---|---|
| Fundamentals | 8,03% | -15,51% | -11,43% | 38,85% | 213,51% |
| Bitcoin | 9,75% | -13,38% | -6,71% | 58,10% | 321,98% |
| BITW10 | 11,14% | -12,08% | -6,83% | 42,77% | 224,69% |
Blockrise is founded with a strong focus on risk management. By leveraging our deep understanding of the crypto market and advanced tools, we strive to minimise risks.
The bitcoin holdings of all clients are stored in individual wallets and are externally verifiable on the blockchain. This guarantees full transparency and security. Blockrise will never lend out assets or use them for staking services without the client's explicit mandate. Clients using Fundamentals can deactivate asset management at any time.
All transactions within Blockrise are executed through our trade wallet on the blockchain. Euro funds are securely managed in the Blockrise trust account, in the client's name. Our partnerships with multiple trading partners allow transactions to be completed within minutes, minimising exposure of your funds. This integration also reduces price risk and increases liquidity.
Blockrise's proprietary custody solutions ensure that clients maintain ownership over their assets. In other words, clients always have the possibility to withdraw their assets to an external wallet or bank account without undue delay.
At Blockrise, your assets are never pooled together with those of other clients. When you activate asset management, a separate portfolio wallet is created exclusively for you. Additionally, Blockrise generates a dedicated portfolio key used solely for rebalancing your portfolio. This ensures your bitcoins remain secure and under your control throughout the process.
Every month our investment managers update the portfolio documents, consisting of a factsheet, rebalance sheet, and portfolio strategy. These document contain relevant information on total performance, risk-adjusted performance, and market developments. Once every 12 months, you receive an extensive yearly performance document, indicating your performance and fees.
Our investment managers would be delighted to meet you at our office in Rotterdam. If you prefer, you can also start your registration immediately online!
At Blockrise, we are committed to full transparency regarding our fees. For portfolio management, we charge a management fee and a performance fee. The performance fee is calculated annually using a high water mark to ensure fairness. For details on other operational fees and a more comprehensive explanation, please refer to our fee schedule.
We are here to provide guidance and answer all your questions. Feel free to contact us for more information or to schedule an introduction at our office.
