CBOE VEST BITCOIN FUND
- Cboe Vest is a financial advisory firm that delivers option-based investment protection and various other products to help their clients become financially free.
- The Cboe Vest firm has introduced the first ever Bitcoin strategy-based volatility fund.
- The fund seeks to protect the interests of their investors by managing its volatility during severe declines.
What is Cboe Vest’s new product?
The Cboe Vest advisory company has announced the launch of the first ever Bitcoin strategy-based volatility fund. The fund will be managed by an institutionally based asset management company with adequate expertise in risk management. The Cboe Vest Bitcoin Fund offers a simple way to enjoy returns linked to Bitcoin. These returns are based on a low-risk high-reward strategy as the fund manages the volatility of the asset during severe declines such as the fall in May, 2021.
The fund provides exposure to the world’s best performing asset and investors can purchase shares of this fund through their brokerage account.
The advisory launched this fund because of its belief in Bitcoin and cryptocurrencies. The firm believes that Bitcoin and other stable coins have the capacity to change the world just like the internet did in the 1990s. Investors can become a part of this revolution without worrying about the asset’s precedented volatility and corrections.
How will the fund manage its volatility?
Bitcoin has a history of being a highly volatile asset. Bitcoin has proven to be five times more volatile than the U.S stocks and bonds. The coin is also known to correct more than 50% every few years. These corrections are very painful to investors who invest at the peak of the bull-cycle. The Cboe Vest fund has developed a strategy so as to mitigate loss during volatile times.
This strategy involves softening the hits of volatility that occur from time-to-time. The fund will actively adjust their portfolio between Bitcoin futures and the cash segment. When the volatility of the asset increases, the fund will reduce its exposure to Futures contracts. On the other hand, the firm will capitalize on the derivative contract and maximize gains when its volatility is lower.
In this way, the asset managers will provide investors access to Bitcoin and reduce its volatility in the process. The fund intends to maintain the best risk-reward ratio in accordance with its capabilities and resources. It wants to protect the interests of those investors who cannot stomach losses or those who enter the market at a wrong time.
Why should you have this fund in your portfolio?
Hedge Against Inflation: Bitcoin is considered as an alternative to commodities such as Gold or currencies such as USD and Euro. These investments used to serve as a hedge against inflation. Aggressive investors can invest in the Cboe Vest fund to use Bitcoin as a hedge against inflation.
Dynamic Returns: A widely known fact is that Bitcoin is very different from traditional investments such as stocks, bonds and debentures. Despite all major corrections, Bitcoin has averaged approximately 300% returns per annum. Investors looking for huge returns with less risks can look to incorporate this fund in their portfolio.
Cryptocurrency allocations: It is believed that we are still in the early stages of cryptocurrencies. Most of the investors are not aware of the utilities of cryptocurrencies. New investors with little to no knowledge can allocate their portfolio into this fund to benefit from the new asset class with minimum risk.
What are the benefits of this product?
The introduction of this product is bound to change cryptocurrency investing forever. Here are some of the ways in which the product can help investors:
- Investors can invest in Bitcoin for higher returns with less risk due to the volatility mitigating strategy of the Cboe Vest company.
- People can conveniently buy and sell shares of this fund through their brokerage account. Thus, it is very easy to invest and easier to liquidate.
- Investors can diversify their portfolio beyond commodities and stocks. They can venture into a new asset class as a whole.
- They can invest in the Bitcoin fund to hedge against inflation during uncertain times.
- Bitcoin combines all the features of traditional investments. It is a hedge against inflation just like Gold. It provides capital gains like stocks. Bitcoin can be a store of value like bonds.
Thus, the Cboe Vest Bitcoin Fund will greatly encourage retailers as well as institutions to park their money in the best asset without much volatility concerns.