This is the official BITOBS thread serving as a means of communicating important notices, and answering questions. It can also serve as platform for trading shares between investors.
Announcement of the FundPrevious ThreadI have built a website with information on the fund that I am operating.
It’s named BITOBS:
www.bitobs.netLogo:
http://bitobs.net/img/logo.pngThe fund is now public, so everyone can invest.
I have tried to be as clear as possible about how the Fund is operated.
If you are interested, please have a look and let me know when anything is unclear or should be further explained.
Currently, the Fund will only accept the issuance and redemption of shares directly.
Regarding a possible IPO please let me know whether you would be interested in this. Of course, it would make shares freely tradable between investors. However, the unreliability of the Bitcoin securities exchanges is a problem (e.g. withdrawals from BitFunder are currently stuck). Cryptostocks is an option, but involves costs. Maybe a forum trading method with escrow would be a more viable option. Your opinion is appreciated.
What is BITOBS?BITOBS is an open-ended investment fund with a variable capital. The objective of the Fund is to obtain a positive return while preserving a sufficient risk spreading. The aim is to realize an average annual total return of at least 25%, after deduction of all expenses.
Investment strategy (short version): 1. Anticipating the Bitcoin exchange rate.
2. Investing in arbitrage opportunities that may arise.
Investment restrictions (short version):- At all times, a minimum of 25% of the Fund’s NAV must be held in fiat or Bitcoin.
- Investments in Bitcoin (mining) assets are not permitted.
- A maximum of 50% of the Fund’s size can be used for any investment opportunity.
- Stock lending is permitted.
- Borrowing is permitted for up to 25% of the Fund's NAV.
Other notes:- Current NAV/share is BTC0.012583
- Minimum investment is 100 shares.
Monthly Report - October:Result:
the NAV/share decreased by 1.52%.Due to a significant increase in the Bitcoin exchange rate, the Fund struggled to retain its value. Although, we were able to gain sporadic returns which minimized the Fund's depreciation, this month's return is -1.52%.
Generally, a part of our strategy involves selling part of the Fund's Bitcoins whenever there is a reason to do so, i.e. an indication of an imminent decrease in the Bitcoin exchange rate. While there were almost none of these indications, we have held 75% of the Fund's value in Bitcoin, most of the time. The other 25% of Fund's NAV (held in fiat) decreased by almost 37% (BTC-denominated).
The Silk Road raid of October 2nd; we were able to profit from the price drop by selling part of the Fund's Bitcoins before the exchange rate decreased any further. Additional active trading resulted in a decent return of 9% for that day.
Market inefficiencies were exploited wherever possible, however the opportunities were limited. Any schemes that would involve selling Bitcoins and withdrawing fiat through Mt.Gox have been avoided due to the (increasingly) long 'cycle times' associated with Mt.Gox withdrawals.
Finally, we were able to 'bet' on the Bitcoin price going up, by borrowing fiat money (an equivalent of 10% of the Fund's NAV). After deduction of interest payments, these funds gained a 19.67% return.
Overall, it has been a month in which the Fund struggled due to the decreasing value of the fiat held by the Fund, but the overall result of -1.52% is tolerable.
I will do my best to continue creating value for my investors. Feedback is always welcome!
