The only actively managed digital currency fund in Canada, Rivemont crypto fund, is presently holding about 91 percent of its assets in cash. This action taken by the firm is due to the uncertainty that is surrounding the near-term trajectory of the crypto market.
The Quebec based company wrote in a biweekly report which is posted on Facebook that as at Friday, July 13, 90.9 percent of its entire assets which is valued at C$3 million (2.3 million USD) were denominated in fiat currencies and the other 9.1 percent were in Bitcoin (BTC). That’s notable because Rivermont has been given regulatory permission to trade five other digital currencies: Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Ripple (XRP) and Ethereum Classic (ETC).
That is not to say that the firm has not actively invested in cryptocurrency when the constraints looked impressive, in fact, the fund reported that half their assets were denominated in Bitcoin and Ethereum at a point during the previous reporting cycle. Still, the firm stated that it took “the path of discipline and resold our positions, waiting for a future profitable entry point for our investors.”
The return to fiat currency has not been the sole occurrence in the recent investment plans that Rivemont has made. As a matter of fact, the last two reporting cycles has ended with the firm holding a significant portion of its capital in cash instead of cryptocurrency. Referring to the Bitcoin’s 30-day Moving average, the fund stated in its report that:
“Technically speaking, it will be necessary to observe if we are going to be in the process of becoming more or less successful.” further saying that “Under the current portrait, any major exposure would have to be rushed.”
Rivemont fund became operational on December 14, 2017, just a few days before Bitcoin (BTC) price reached an all-time high of about $20,000. However, the firm painfully missed out on the incredible 25,000 percent a single year returns that other top cryptocurrency hedge funds experienced.
However, the recent plunge in bitcoin price had not dampened Rivemont’s prospect in the market as the bitcoin made a significant surge on Tuesday albeit still way below the price it was when Rivemont launched seven months ago. In the firm’s most recent report, it stated that:
“Those who think that interest in cryptocurrencies is running out of steam are not watching closely, the opposite is happening.”
During an interview with Bloomberg, Martin Lalonde, the president and portfolio manager of Rivemont, corroborated the assessment in the fund’s report stating the Rivemont is confident that buffoon prices could increase threefold over the next several years. In his words, “We’re very bullish, we think it could easily double or triple from where it is right now,” although he was less optimistic about Bitcoin’s near-term trajectory. He added that:
“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.”
The digital currency was quoted up 7.7 percent at US$6,663.80 on Monday, so it is fair to say that Rivemont is willing to invest in the future rise of Bitcoin (BTC) and other virtual currencies but want to secure the short-term future of the firm by converting to fiat