Invictus Capital is proud to present our Bitcoin Alpha Fund (IBA), an open-ended fund that is always long on Bitcoin (BTC), and aims to outperform it over the medium to long term by utilizing options and lending strategies to offer both downside protection and yield.

Each month the fund purchases downside insurance in the form of a put option that aims to cap potential drawdown to 10% that month; the fund is thus expected to outperform Bitcoin during months where the Bitcoin price falls significantly. Significant Bitcoin gains are made during any period of drawdown exceeding 10%, and IBA has, historically, strongly outperformed its benchmark of BTC.

To cover the cost of the premium associated with the put option, IBA's yield strategies include margin lending and sale of OTM call options.

Additional information on the rationale behind the fund can be found here, or check out the litepaper.

Did this answer your question?