Cyber Capital Fund A exclusively invests in cryptocurrencies with a long-term perspective, based on the premise of value investing through fundamental analysis.
The cryptocurrency market is relatively small, inefficient and extremely volatile. This allows Cyber Capital to capitalize on unique investment opportunities. It takes specific blockchain knowledge and a multidisciplinary appoach to identify valuable assets.
The fund is actively managed, rebalanced monthly and seeks to outperform BTC. To maintain full liquidity for our investors, Fund A does not invest in ICOs, go short, use leverage nor engages in intra-day trading.
- ISIN: NL0012757512
- Eurekahedge: EH58337
- Reuters Lipper: 68494150
Cyber Capital invests behind digital assets that address tangible use cases, generate economic benefits, demonstrate signs of product-market fit, and exhibit compelling crypto-economic models. We use fundamental analysis to select investments based on thorough due diligence, examining token valuation, technical protocol level research, on-chain data analytics, and active engagement with management and developer teams.
We strive to keep the portfolio closely in line with the maturity and market attractiveness of each of these segments. Investments in every segment are diversified over one or more cryptocurrencies, depending on their relative strength and our expectation of them to eventually outperform the index. The fund is currently mostly invested in the protocol and network layers as we expect those to benefit most of the network effects, and because the application layer is still significantly less mature.
The term GAV (gross asset value) is based on the gross market value of all assets within the fund’s portfolio.
The GAV is the entry price per unit into the fund on this date. The GAV is updated each Wednesday.
The portfolio inception date is 1 April 2016 with a unit price of € 1.00.
Fund A inception date is 1 January 2018 with a unit price of € 100.23.
Past performance is no guarantee of future performance.
Price data source: Coin Market Cap
Gross monthly performance figures in % as at 13 October 2021
Cyber Capital applies the highest standards of cryptographic, IT and physical security as well as multi-signing processes. The assets we invest in are stored in a hyper secure air-gapped vaulted deep cold storage set-up, based on proprietary hardware solutions. Our deep cold storage solution is further secured through operational security measures by a sharded private key set-up providing institutional–grade custody of the invested assets for our clients.
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At Cyber Capital, we take a unique multidisciplinary approach to identifying untapped opportunities through a research intensive, long-term focused investment framework.
1. How do I know whether my investment is secure?
The security of the cryptocurrencies under management is one of our primary goals. To protect the large majority of the fund assets from unauthorized access, the cryptocurrencies that together account for up to 80% of the assets under management (AUM) (variances may occur due to value fluctuations) are held in cold storage with two out of three multi-signature. However, although continuous optimization of the security will remain paramount, we cannot be held responsible for the loss or theft of cryptocurrencies of the fund. Unless the loss or theft is caused by the gross negligence or wilful default on our part.
2. How can I participate?
- Request the fund documentation.
- Return signed copies.
- Transfer the subscription amount (€).
- You will receive a login for your investment account.
3. What are the risk factors of investing in the fund?
Due to the relatively low overall market value, significant volatility and high unpredictability of cryptocurrencies, an investment in cryptocurrencies is considered a high-risk investment. Prospective participants should be aware that cryptocurrencies are subject to extreme market fluctuations and other risks inherent in investing in cryptocurrencies. The value of cryptocurrencies and the income derived from them may fall as well as rise and participants may not recover the original amount invested in the fund. Therefore, the fund is only suited for participants who can afford such a high level of risk.
4. What are the costs?
- 2% annual fixed fee for ongoing charges
The ongoing charges figure (OCF) is the total yearly costs, including the management fee (except for profit share, transaction and redemption fees), The OCF is set as a fixed percentage of 2% over the assets under management (AUM) for the year concerned. The OCF is accrued weekly and charged monthly to the fund.
- 20% annual profit share
Cyber Capital is entitled to a profit share of 20% of the total gross yield (after deduction of the fixed fee) above the High Water Mark (HWM). The profit share is charged at the last transaction day of each year, or upon redemption of units
- 2% redemption fee
The 2% redemption fee is charged to discourage short-term, in-and-out trading of units and to compensate the fund for the possible negative effect of redemptions on the net asset value (NAV). The fee will be charged over the net redemption amount (after deduction of the fixed fee and the profit share) upon redemption of units. The redemption fee does not go to Cyber Capital, but is credited to the fund assets.
5. What taxes do I need to pay over my participation?
As a result of tax transparency, the fund is not subject to Dutch corporate income tax. All of the fund’s income and capital gains are therefore attributed to the participants as if they were investing directly in the underlying fund assets. A Dutch natural person holding units in the fund is generally subject to Dutch personal income tax in ‘Box 3’, provided that the units are held as a private investment and are not part of a personal enterprise subject to Dutch personal income tax in ‘Box 1’, i.e. a sole proprietorship. Dutch legal entities participating in the Fund, such as a limited liability company, are taxed in The Netherlands for all income and capital gains obtained from the participation.
6. Can I resell my participation?
No, units can only be sold back to the fund (upon redemption) and can therefore not be transferred to third parties.
7. Does the fund pay periodic dividends?
The fund does not pay out periodic dividends. Net profits are paid out upon redemption only.
8. When and how is the net asset value (NAV) determined?
The NAV is determined each Wednesday at 13:00 UTC by the fund administrator IQEQ, based on the rates provided by Coin Market Cap. The incurred costs, as described in chapter 9 of the prospectus, will be taken into consideration for the determination of the NAV.
9. Can I enter or exit the fund at any moment of my choosing?
The fund will in principle issue and redeem units every Wednesday at 13:00 UTC, at the request of (prospective) participants, unless the NAV calculation is suspended or the prospectus provides otherwise. Requests for the issue and redemption of units need to be received by the administrator at least one calendar week prior to the intended transaction day. Only requests received before Wednesday 13:00 UTC will be executed the following Wednesday, based on the established NAV on that day at 13:00 UTC.
10. What is the minimum subscription amount?
The minimum subscription amount is € 100,000. The minimum of subsequent subscription amounts is € 5,000. The total invested amount per participant may never be less than € 100,000 (excluding decrease in value).
11. What is the minimum redemption amount?
The minimum amount for which units may be redeemed is € 5,000. Fractions of units may be redeemed up to four (4) decimals. Any redemption may not cause the remaining invested amount to be less than € 100,000, as the total invested amount per participant may never be less than € 100,000 (excluding decrease in value due to market price decrease).
12. How well is the fund’s portfolio diversified?
Although the portfolio consists of a large number of different types of cryptocurrencies, the majority of Fund A’s capital is allocated towards the portfolio top ten in terms of market capitalization. Compared to the smaller ones, these cryptocurrencies are all well established with more liquidity and can be considered more secure, stable and reliable. The fund also invests in the smaller less established cryptocurrencies, for which a strategy of multiple small positions is applied. Also known as the “unicorn” strategy.
13. Where can I see the current status of my investment?
At least once a week (every Wednesday afternoon) we publish the gross yield on this website. Furthermore, participans have access through their private and secure investment account on the website the following information:
- Number of outstanding units per participation
- Net asset value per participation (updated weekly)
- Transaction overview
- Personal fiscal year report
- Fund’s annual report
14. Can I see the ratios of the coins in the portfolio?
No, we do not publish the ratios of our cryptocurrency portfolio.
15. Is the fund regulated by a financial authority?
The fund is an Alternative Investment Fund (AIF) and the fund manager is an Alternative Investment Fund Manager (AIFM). Both the fund and the fund manager are registered under the Alternative Investment Fund Managers Directive (AIFMD) registration/light regime with the Netherlands Authority for the Financial Markets (AFM). This means that the fund manager is able to make use of an exception from the prospectus requirement, license requirement and full application of the AIFMD. Therefore, although the investment, the Fund and the Fund Manager are registered with the AFM, they fall outside the supervision of the AFM and the Dutch Central Bank (DNB). Pursuant to article 2:66a of the Dutch Financial Supervision Act (Wft), no licence and no prospectus are required for this activity.