I bought my first bitcoin in 2013, starting small while also running a tech company. Soon after, I began researching cryptocurrencies, and also invested in Ethereum and Litecoin. The more I learned about the blockchain, the more I understood the value of the underlying digital assets.
Although people compare the blockchain to the internet in the late 1990’s, there are significant differences. In the internet era, native protocols like HTTP and SSL were not monetized. Instead, investment was focused at the application layer, in companies like Amazon and Facebook. With crypto assets, you are able to invest at a deeper layer: the protocol layer. You can hold blockchain assets that will be built upon for some time to come, owning part of the digital real estate on top of which platforms and technologies are built.
From my base in San Francisco, I was fortunate enough to meet and exchange ideas with many of the brightest technologists and savviest investors in the cryptocurrency world. Extensive diligence and good fortune came together, and I experienced considerable success with my personal account -- returning over 2000%.
When friends and family learned of my success, and the almost unheard of returns that cryptocurrency can provide, they began asking me for advice. At one point, a friend who was looking to invest capital in the crypto sector asked me to investigate several cryptocurrency hedge funds. I was a bit skeptical of the concept, but told her I’d take a look.
But as I dug into the crypto hedge funds, I was surprised to find that some active managers had not only been outperforming bitcoin, but had been doing so with significantly reduced volatility. In technical investing terms, some active crypto managers had Sharpe ratios better than bitcoin. They had stellar risk-adjusted returns -- they generated bitcoin-like profits with reduced bitcoin-like price fluctuation.
However, I soon learned that the most desirable hedge funds -- those with the smartest managers, highest Sharpe ratios, strongest organizations -- require million-dollar minimum investments or are closed to new investment. With people clamoring to get into their funds, they can afford to be choosy. If you don't have a million bucks, you can't get in the door with most of them. I reported back to my friend that, even though she was an accredited investor and had a sizable account, she didn’t have enough capital to invest with the very best crypto hedge funds.
This was my initial motivation for creating the BitBull Fund -- the first cryptocurrency fund of hedge funds. BitBull Fund has solved the access problem of investors interested in world-class crypto management. The fund has a minimum investment of $100K and an initial 0% management fee.
BitBull creates and monitors a carefully-crafted portfolio of active managers. I believe this is the best way to generate high risk-adjusted returns and to build wealth in the crypto sector. We conduct exhaustive diligence in the cryptocurrency space. This is a major undertaking due to the fact that there are so many funds (100 crypto hedge funds by a recent count), as well as the varying investment thesis and operational concerns, including security.
While we are very bullish on the prospects for cryptocurrencies going forward, we look for managers who can both generate alpha in uptrends, and preserve capital -- or even make money -- in downturns. By creating a basket of the best active managers -- which we consistently manage, analyze, and rebalance -- we are confident that we can provide excellent risk-adjusted returns and steer through the inherent volatility in these markets as they begin to mature.
Educating myself and others about cryptocurrency investing is also a passion of mine. I personally interview the best cryptocurrency investors and technologists on my "Crypto Joe" channel on YouTube, including Mike Novogratz's new fund, Galaxy Investments; Adam Draper; and more. BitBull Capital understands the desire to learn this nascent asset class; we will be giving our investors access to the best research and educational content about the cryptocurrency investment industry.
BitBull’s mission is to build wealth for our clients. We do this in cryptocurrency, because it's the sector that offers the greatest opportunity for wealth generation in our lifetimes. We’ve assembled a team with tremendous expertise that is focused on crypto hedge fund research, and creating a portfolio of the best crypto fund managers on the planet.
Joe DiPasquale
Founder, BitBull Capital