Bitcoin Arbitrage Fund
Following the successful launch of our USD-denominated arbitrage fund, "SCP", we're pleased to announce a second series in the fund – this time, denominated in Bitcoin. The Bitcoin series "SCB" will trade the same opportunities and accrue the same returns as the USD series, except these returns will be expressed in milliBitcoin (1 mBTC = 0.001 BTC) instead of USD.
SCP vs SCB - An Example
Paul bought 1000 SCP at a price of 1.10 USD each. At the same time, Brian bought 1000 SCB at a price of 1.10 mBTC each. The numerical prices of SCP and SCB (in this case, "1.10") always match each other. However, the base currency is different. Paul bought his 1000 SCP for $1100, whereas Brian bought his 1000 SCB for 1.1 BTC.
Some time later, the par value of the arbitrage fund has risen to 1.30. This means Paul's SCPs are worth 1.30 USD each, and Brian's SCB are worth 1.30 mBTC each. So Paul's profit so far is $200, and Brian's is 0.2 BTC.
Fund details, risks, reporting, and eligibility for SCB are identical to those of the USD-denominated fund, with the difference that there is a limit to 500,000 SCB in circulation, instead of the 3,000,000 SCP available. At time of launch 1 mBTC ~ 6.2 USD, so the fund sizes in USD terms are similar.
Unlike SCP, which is suitable for many investors because of its USD denomination, SCB is suitable only for investors who wish to (and are able to) include exposure to Bitcoin in their investment portfolio. If Bitcoin becomes more valuable in USD terms in the future, SCB will outperform SCP in USD terms. Conversely, if Bitcoin's value decreases, SCB will underperform SCP in USD terms.
A full white paper for SCB will be published in the near future. Meanwhile, SCB are open for investment immediately. Please get in touch if you're interested.
SCB Launch Special Offer
As part of our SCB launch, we are offering existing SCP holders the chance to trade their SCP for SCB with no fees for a limited time. At the current low Bitcoin prices, this may be a great opportunity to participate in Bitcoin's next bull run. The mechanics of this would be simple:
1. Get in touch and tell us you'd like to switch from SCP to SCBs. Send us any SCP you would like to exchange.
2. Select a future time to measure the BTC/USD price. We'll use the price at this time to value your SCP in Bitcoin terms with zero fees.
3. We'll send you your new SCB.
Please note that any SCP to SCB exchange will have no bearing on the vesting of USKYs later this year.