How often can I make a full or partial distribution?
With written notice to the manager, and not less than 45 days prior to the end of any calendar month from which the withdrawal is sought. The minimum distribution amount is not to be less than $5000, and after such distribution, there must be a minimum of $10,000 still invested in the fund to remain a participant in the fund.
How much of my investable net worth would you recommend I invest in this digital asset space?
We suggest between 1-10%. Yale Endowment said 1-6%.
How much would you recommend I invest in each of your two funds and why?
We suggest 50:50 although the Arbitrage strategy is probably more niche.
How liquid are these two funds?
SAF has monthly liquidity and SSF also has monthly liquidity.
How many different cryptocurrency exchanges are utilized by each of the two funds?
We utilize approximately 24 exchanges at any given time.
How safe are the different cryptocurrency trading exchanges that are used?
We use “white listed exchanges” that are reputable.
What makes your funds different than many of the other funds that I could invest in?
We have an audited 3 year track record with proven performance and experienced team with independent audit, custody and administration.
What’s the most important thing or things to consider when investing in cryptocurrency’s?
We believe safety and security, experienced and known team, transparent strategy, ease of access and competitive fees.
Why is bitcoin considered one of the best inflation assets to own?
Because it is known as a store of value with a declining supply (halving’s every 4 years) with a cap on supply of 21M BTC. Approx. 18.5M have been created.
What does it mean when you say that bitcoin is a “non-correlated” asset and why is that an important advantage for me?
Statistically not correlated to the other asset classes and by adding to one’s portfolio it diversifies the portfolio even more and adds alpha.
Why is it believed that bitcoin is expected to grow by geometric proportions over the next five years?
Demand is now simply out stripping supply by large multiples. We expect this to continue, and geometrically, as many of the major institutions are now starting to add it, and in large blocks, to their balance sheets. No longer will purchases just be made by small individual investors. You are now seeing major public and private companies buying $50M to $500M worth of bitcoin in a single purchase.
Is there any limit to what bitcoin can grow to in value per a single bitcoin?
Why are public companies now buying bitcoin?
They see it as a “store of value” and best bet to hedge inflation.
How is bitcoin listed and valued on the public company corporate balance sheet?
Held in the Marketable Securities section of their balance sheet.
What are some of the companies and institutions that are now utilizing, investing in, and or offering bitcoin as part of their business structure and model?
PayPal, Square, Grayscale, MicroStrategy, Spotify, Fidelity, JP Morgan, MassMutual, etc.
See complete list here: LINK
What are the top five countries that have adopted the use of Bitcoin?
China, US, UK/Europe and Emerging markets.
What safeguards are in place to prevent criminals from hacking directly into the exchanges themselves and stealing the funds’ assets?
Exchanges handle this
Is there any insurance protection provided by any of the exchanges that you use in case of a criminal hack and who are some of those insurance companies?
Some exchanges offer insurance but still really to be tested.
Do you believe I am safer in investing in one or both of your funds versus just buying the cryptocurrency I want on one of the exchanges myself, like COINBASE, and why?
To start, you need to know how to set up your ownership and then you need to understand the difference between “Hot Storage” and your own wallet versus “Cold Storage”. Additionally, the Arbitrage fund and the Spectrum fund are professionally run with independent 3rd parties.
Unlike your more typical exchanges like the NASDAQ or the S&P 500, where you can only buy and sell a single particular stock, why can you buy and sell the same cryptocurrency on different exchanges and at different prices?
Because the demand in one region of the world at any given 24-hour period of time, can be different then another region, and the exchanges can charge a little more or less when they list the price to purchase the cryptocurrency’s themselves on their particular exchange.
Are your two funds known and or approved by the different crypto exchanges you utilize to carry out your investment strategies?
How much additional alpha do you believe your trading strategy will produce for each fund over and above a simple buy and hold investment position in Bitcoin or any other crypto based index fund?
With regards to the SPECTRUM FUND, we expect to substantially outperform with even more diversification, safety, and more security. Why? Because our analytic indicators and software give us 4 unique and proven advantages.
1) They allow us to avoid large dips in the markets,
2) Choose the right altcoins,
3) Get back invested after the market dips, and
4) Achieve positive arbitrage gains during both up and down markets. Also, you can’t just show up and learn about this space, you must be in it and across it for years to understand the different coin sectors and tokens.
Have either of the funds, their investment managers, and or their management team ever had any legal or disciplinary action in the last 15 years, anywhere in the world?
What if any is the current state of regulation when it comes to bitcoin and other cryptocurrency’s?
The regulatory outlook is becoming more friendly to BTC. Example is the OCC saying USA national banks can custody top digital assets.
What are the top cryptocurrency exchanges in the world?
How many cryptocurrency exchanges are used for the arbitrage fund?
We use approximately 24 exchanges around the world to execute our strategy
How can you execute the trades so quickly?
The simple answer is that we have direct API connections that go through the back door and into each exchange and all transactions are done via our automated proprietary software. We also have a large inventory of cryptocurrency that the parent company utilizes. Last, we never get stopped out like many investors do when the website gets super busy, and they cannot log in.
How long did it take to write the arbitrage trading software?
A little more than 2 years, and it keeps getting adjusted and added to every
Why is there such a big difference in the performance of the South African arbitrage product versus the USD product?
Is the arbitrage trading strategy and software being monitored all the time?
Yes. Besides their being software monitoring placed on the code itself, there
are also human beings, team members monitoring the fund and its software on a
Why do the cryptocurrency’s trade at different prices on the different exchanges at the same time?
This is due to various things such as the volatility of the market, the time of day in that region of the world, the volume of trades being done on that particular exchange, the movement of one cryptocurrency versus another, and various other factors
Do all the exchanges that you utilize know what you are doing on all the other exchanges you use?
Absolutely YES. They are all very happy because we either generate a lot of
fees for them and or we create enormous volume.
Does your fund pay the same trade fees as your average investor does or do you get some sort of discounted pricing?
On some exchanges we get institutional pricing, and on some exchanges, we don’t get charged any trading fees.
What makes your arbitrage fund so unique?
There are basically 3 things; The first is our software. No human being could
scan 50 cryptocurrencies across 24 different exchanges, identify a price difference between a particular cryptocurrency, and then execute a simultaneous buy and sell trade at a profit, and all within milliseconds. The second thing is that we utilize approximately 20 cloud-based servers around the globe that all have approved API connections to all the exchanges we use. The third and last thing is that we have corporate fund accounts already set up with each exchange and they are fully loaded with millions of dollars of cryptocurrency trading power.
Do all the cryptocurrency exchanges you use to execute your trading strategy have insurance protection against a cryptocurrency hack?
Some do and some do not.
Do the fund accounts on all the exchanges hold cryptocurrencies?
None of the investor fund accounts in the arbitrage fund hold anything but cash. In the spectrum fund we do hold crypto currencies.
Is there a trade happening every second of every day?
No, a trade does not happen every second of every day. Sometimes there isn’t enough of a differential between the exchanges in the price of a particular cryptocurrency for the software to execute a trade. Sometimes there is no differential in the price of the cryptocurrencies on any of the exchanges.
Are there any front-end or back-end charges levied upon any of my investment principal or profit?
Are there any surrender charges imposed upon any of my distributions?
What is the size of the Stewards Investment Capital organization and its affiliate operations?
Approximately 35+ employees/members located throughout three regions of the world.