Bitcoin Investment Fund

[Tanyc]

A friend and I have been thinking about starting an Investment company, where deposit are made in bitcoins.  This investment fund would be using a system that has been used the past year successfully.  We are planning to start this on a trial basis, but we wanted to know if people were even interested.  So would anyone be interested in this?  Would people actually deposit anything due to the fact that we would be just starting out?

[spruce]

Maybe. Depends how legit it seems or if it looks like a scam.

[Tanyc]

Spruce,

How would we best show that we are serious?  We are currently working on the site, and are willing to work with the initial customers to ensure that they understand how the fund works and that we are serious about the fund, and about keeping their money safe.

[Tanyc]

RonRamon,

Your response is kind of what I was expecting, the only issue is that the cost of running that would be very large compared to the number of bitcoin users/possible investors.  The idea we had was creating a "micro" investment fund, where people would be investing a small amount of money to see what kind of interest this really generates before starting up a larger organization.  Also the plan right now is to just use one fund, to simplify things.

The idea of having support, live updating of performance is given.  Right now I would say we are targeting small fish to test out the bitcoin market, before bring in larger sums of money.

[gigabytecoin]

RonRamon,

Your response is kind of what I was expecting, the only issue is that the cost of running that would be very large compared to the number of bitcoin users/possible investors.  The idea we had was creating a "micro" investment fund, where people would be investing a small amount of money to see what kind of interest this really generates before starting up a larger organization.  Also the plan right now is to just use one fund, to simplify things.

The idea of having support, live updating of performance is given.  Right now I would say we are targeting small fish to test out the bitcoin market, before bring in larger sums of money.

All you really need to do is:

a) look professional
b) act professional

That's it.

If you look like a nice website and answer any and all of my questions within 24 hours as most good websites should, chances are you will get some of my money.

[shaun5000]

How much initial capital are you wishing to work with, in short what would the buy in be and what ROI are you targeting over what period?

[alfred]

I am Tanyc's said partner... thanks so far for your comments.

How much initial capital are you wishing to work with, in short what would the buy in be and what ROI are you targeting over what period?

Initially, in trial mode, we are thinking of limiting external ownership to equivalent of $5,000 with individual ownership limited to 10% max. The particular fund is already executing with substantially more funds than that and the trial would shadow that. Target APR is 40%. You can find out more here http://www.xidcapital.com/alpha-fund.

Any experience in investing at all or are you guys doing this for a first time thing?

Yes, we both have trading experience and mine goes back 5 years. In the last 2 I've concentrated on systems like the one described above.

I want to know how fast and easy it is to A.) Send you my money to the fund and B.) Cash my money out of the fund

I want to know limits, minimums, deadlines

If my investment creates a return today, I want my cash in pocket yesterday.

In trial mode and for this first fund, we envision requiring at least 1 full trading day notice of entry or exit. Entry/Exit would always be End Of Day and because of this, you would not know what price you were going to get in advance. Having said that, this particular fund is designed to 'bag' gains itself so you are supposed to leave it alone, not micro-manage it, and let the system do the work for you. Hopefully, that will eventually become apparent in its trading history compared to the benchmark (it is not currently!)

Initially, the fund size and individual participation would be very limited. The point of the trial is really to discover processes and whether there is a market for this type of service. Eventually, it could become larger, audited, regulated and perhaps a business.

Minimum participation would only be 1btc but we would also limit the total number of participants to keep things manageable.

Please keep your comments/questions/ideas coming as we decide if/when/how to proceed...

[SealsWithClubs]

Is the plan to invest in specifically bitcoin businesses, or something else? 

Is the idea to eventually have thousands or millions of small investors, or is the goal a few larger individual investors?

How many hoops are you and your investors going to jump through?  I imagine one requiring a lot of paperwork would be less popular amongst bitcoin users.

[shaun5000]

I would be interested in putting some BTC in, how would I keep track of my investment?

[Tanyc]

Is the plan to invest in specifically bitcoin businesses, or something else? 

Is the idea to eventually have thousands or millions of small investors, or is the goal a few larger individual investors?

How many hoops are you and your investors going to jump through?  I imagine one requiring a lot of paperwork would be less popular amongst bitcoin users.

You will be buying in with Bitcoins and our fund will be invested into stocks on the US stock exchanges.

Our plan is to go towards having thousands of smaller investors, being part of a niche market normally does not lead to a few larger individuals, but we would not be against larger investments in the future

Hoops?  We want to make this very simple and straightforward.  The initial investors will not have alot of paperwork to file.  With that in mind, as the fund grows we could have to make might have to make things more complicated, but this will be progressive.  Initially we will be running this as an email, more personal, service then growing to a more automated log in system.

I would be interested in putting some BTC in, how would I keep track of my investment?

You would be able to track the actual fund online.  Initially current investment updates would be on a per email basis, with a reasonable response time, we could even do automatic weekly updates if that is wanted.  As we build the fund we will make this also more automated, and you would be able access this data online as well.

[alfred]

We have posted a bunch more stuff on the site, including FAQ, how to invest and some updates to the fund description.... take a look http://www.xidcapital.com/faq

[AstroKev]

while this isn't a fund, it's certainly got some 'banker' people behind it:

http://techcrunch.com/2011/06/18/bitcoin-crazy/

[Tanyc]

C'mon man, gimme a break here.  Can purchases be done by entities instead of by individuals?

Purchases by entities is perfectly acceptable.

[Vladimir]

And there is always an alternative for investors, just keep the bitcoins.

[S3052]

And there is always an alternative for investors, just keep the bitcoins.

+1 Vladimir.

As most of the time, your comments bring it to the point.

And particularly a NASDAQ long only strategy has not a lot of room to rise in the current crisis, particularly not vs. bitcoins if bitcoins stays strong.

[KBundy]

And there is always an alternative for investors, just keep the bitcoins.

I totally agree, if you want to start an investment fund, buy bitcoins.

As new clients that have automated encryption hit the web, along with clients for mobile devices hit the market the use base is sure to jump.  Right now, the market is testy, cautious, and begging for more security and less complicated software.  If you can provide these type of services to people, your bitcoin investment will skyrocket.

-KBundy

[alfred]

And particularly a NASDAQ long only strategy has not a lot of room to rise in the current crisis, particularly not vs. bitcoins if bitcoins stays strong.

That's not a valid analysis of the fund http://www.xidcapital.com/alpha-fund. It does not need 'room to rise' in the same way that a buy-and-hold strategy of the QQQs might. It can profit in a downward or choppy market because it constantly buys and sells stocks and can spend a lot of time in cash. Have a look at the model charts and you can see that although it still experiences drawdown, there have been no losing years. Contrast that with buy-and-hold of the Nasdaq 100 which is actually still in drawdown from 2000.

The issue of whether it will perform better than buy-and-hold bitcoin - I have no idea. The risk profiles are entirely different, though.

[AstroKev]

An alternative version of these type of funds could be to deal with capex on mining hardware and/or r&d on new technologies for mining/semiconductors.  In this way, rather than the fund being a trading vehicle for bitcoin only, it would be able to identify companies which have some influence in the way bitcoins are generated.  For example, AMD would be an obvious candidate, but other companies working in similar promising areas would be available.  This could help to legitimatize the fund since it would have traditional instruments which would 'benefit in the rise of bitcoin'.

[alfred]

Way to move the market! AMD jumped almost 20% today.... http://www.google.com/finance?q=amd

[KBundy]

Way to move the market! AMD jumped almost 20% today.... http://www.google.com/finance?q=amd

What a very interesting statistic, and such a rapid increase as well, very interesting indeed.  I wonder if bitcoin really has something to do with the rise in AMD sales in the last quarter?  If that is true, that is incredibly excellent news, such an increase in prospect in such a short period of time?  Talk about momentum, this would be excellent to be attributed to our cause.

-KBundy