The actively regulated crypto fund of Canada, Rivemont, has recently revealed that 90% of its total assets are in cash. The total asset of this hedge fund operated by Rivemont Investments sums up to $2.3 million. Out of its total assets, only a minor 9% comprises of Bitcoin [BTC].
This information was released in the form of a Facebook post. However, Martin Lalonde, the president of Rivemont and also functioning as the portfolio manager, gave a telephonic interview. He said, “I would say that the cryptocurrency market right now is not really in a bull market so people are waiting to see if it’s going down further.”
He is hopeful about people regaining their interest and inclination once the price of Bitcoin [BTC] surges. He made an investment exceeding half of the total assets of the fund into Ethereum [ETH] and Bitcoin [BTC]. This occurred at a time when the technical indicator mark was crossed by Bitcoin [BTC] on 4th July and then again on 10th July.
Due to certain regulatory measures, the fund can make a limited investment only in six virtual currencies. This list of digital currencies are Bitcoin [BTC], Litecoin [LTC], Ethereum [ETH], Bitcoin Cash [BCH], Ethereum Classic [ETC] and finally, Ripple [XRP]. However, as time progresses, Lalonde wishes for an expansion of the crypto list. The mid-term objective of Lalonde is investing in the upcoming altcoins, namely Dash [DASH] and Neo [NEO], and also in ICOs.
The establishment of the Fund
Only four days prior to Bitcoin price reaching a height of $19511, that is, on 14th December, 2017, the fund was launched. Following this event, Bitcoin [BTC] witnessed a steep declination, losing two-third of its entire valuation. Between March to June 2018, the fund incurred a loss of 10% while Bitcoin prices fell by 33%.
In the post on Facebook, he said, “Those who think that interest in cryptocurrencies is running out of steam are not watching closely.” He finally commented, “the opposite is happening.” He feels that Bitcoin [BTC] will continue to retain its volatile nature. However, within a span of few years, the price would reach new heights. He stated, “We’re very bullish, we think it could easily double or triple from where it is right now.”
According to Lalonde, “The core will probably still be the major cryptocurrencies because that’s what the investors know about and want in their portfolio, but I would think another half of the portfolio would probably be in smaller cryptocurrencies, more speculative ones, and some that we think will probably have better performance.”
Image via Google
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