This Crypto Fund Claims To Have Outperformed Bitcoin For The Past 5 Years

Off the Chain Capital, a blockchain fund that uses fundamental analysis to find undervalued assets, says it has outperformed cryptocurrency Bitcoin in each of the last five years.

The fund has reportedly averaged 133% returns per year since its inception in 2016, compared to about 108% per year on average for bitcoin, according to the fund Off the Chain. The firm used the compound annual growth rate for both the fund as well as bitcoin using a beginning date of Dec. 31, 2016, and ending Feb. 28, 2022.

Brian Estes, the fund¡¯s CEO and CIO said ¡°We¡¯ve outperformed bitcoin five out of five years, and we¡¯ve done it with 80% less volatility than bitcoin. That¡¯s what I¡¯m really proud of because I built this so endowments, foundations and other conservative investors could gain exposure to blockchain assets and get that downside protection,¡± as per CNBC.

blockworks

Also Read: Meet The 'Crypto Robinhood' Who Plans To Give Away His Billion-dollar Fortune

The fund also said it has outperformed the S&P 500 by a massive 3,653% in the same period, and is 99.99% non-correlated to the broad market index, implying the two do not move up and down in tandem.

The Fund¡¯s Strategy

bitcoinmagazine

Also Read: Ethereum¡¯s Co-Founder Vitalik Buterin Says He Is Worried About The Future Of Crypto. Here's Why

Off the Chain Capital¡¯s strategy is to find mispriced assets in the blockchain space. It aims to buy one dollar¡¯s worth of blockchain assets for 50 cents and make returns on the purchase of the assets, rather than buying them at fair market value and letting them rise. This way it can apply a value approach while capturing the growth of the still-young industry, as per CNBC.

The fund currently has about 200 limited partners and $399 million under management. It mainly targets institutions, endowments, family offices and other high net worth individuals for about a $1 million minimum.

CEO Estes reportedly said the fund currently has capacity for another $200 million to come into the fund. It¡¯s also ¡°very likely to be opening a bitcoin artificial intelligent algorithmic trading fund over the next six months.¡±

Also, Off the Chain is one of the largest buyers of Mt. Gox bankruptcy claims. For the uninitiated, Mt. Gox was once the largest custodian of bitcoin until a Russian hacker stole nearly all of it, i.e. about 740,000 bitcoins then worth $460 million.

The blockchain fund buys those claims from people at an average discount of about 80%, CEO Estes said.

Also Read: This Crypto Token Has Surged 31,000% In Just 30 Days!

For the latest financial news, keep reading Worth. Click here.