Operated by BitcoinsReserve, a Bitcoin investment services firm, the purpose of the Melbourne, Australia-based arbitrage fund is to “[take] the volatility out of investing in cryptocurrency and to smooth out fluctuations by contributing liquidity across major Bitcoin exchanges.” With this being said, BitcoinsReserve co-founder Sam Lee actually attributes the substantial returns, interestingly enough, to the unpredictable nature of the cryptocurrency asset class itself. In short, the arbitrage fund secures investment growth by taking advantage of Bitcoin volatility, capturing virtually risk-free profits.
Features of the fund
The CCAF aims to operate with low-risk and high liquidity factors. Lee describes the fund as “a safe avenue to park hard earned money,” and “the best investment vehicle for introducing people to cryptocurrency.”
The practice of arbitrage itself – attempting to profit from price inefficiencies in the market – is relatively low risk in nature, which is likely the reason the CCAF has generated a positive return every month since its inception.
The fund’s ease of liquidity is a prominent appeal factor for investors. “Investments need to be kept in the fund for a minimum of 30 calendar days, but can subsequently be withdrawn after seven days’ notice,” Lee says.
BitcoinsReserve says it also supplies liquidity to manyof local retail exchanges, including Cointree, Coinscrowd, Coinvest as well as individuals trading on localbitcoins.com, a website that facilitates the peer to peer exchange of bitcoins.
Lee will be speaking at the Inside Bitcoins Conference and Expo, which gets underway in Melbourne on July 9 and July 10. At the expo, Lee will be part of panel of experts discussing the dos and don’ts of investing in Bitcoin and other cryptocurrency businesses.