Zug based startup Invemo has re-launched with the first fixed income bitcoin denominated investment product in Switzerland. Since the launch in mid-December, the company’s customer base has continued to grow, demonstrating the potential of its digital assets solution.
Invemo is a Swiss-based and licensed asset manager, broker and liquidity provider active in the digital assets market and targets professional and institutional clients. It was initially established as a mining company in 2017 to build and operate crypto mining facilities under adequate economic conditions for retail clients. By 2018 the company had set up over 1000 mining units and also secured an investment. The digital assets market has since advanced and changed dramatically characterised by high volatility and the lack of efficiency compared to traditional markets. The latter enables the development of market-neutral trading strategies capable of providing stable income with minimum market risk. To sustain growth and address the needs of a broader clientele, the company with a team of six employees has shifted its focus from crypto mining to crypto asset management and launched a new platform.
Low risk fixed income for professional and institutional investors
The new solution is a low risk fixed income investment product that enables to earn fixed income on Bitcoin holdings with the lowest risk profile of 20% ARR and 2% maximum draw-down. The main target of such investment is to increase the amount of Bitcoin in the portfolio disregarding the portfolio value increase or decrease due to the appreciation of the underlying asset. Such an investment approach focuses on long-term asset appreciation while simultaneously generating alpha, which can be withdrawn as a dividend or reinvested in the portfolio. The investment product is comparable to a Bitcoin bond or a fixed income debt instrument. Invemo enables investors to hold funds on their accounts which avoids the default risk.
Unlike existing products which provide and measure the portfolio performance in USD – a high inflation currency – Maxim Zimin, CIO (Chief Investment Officer) and co-founder of Invemo, explained that Invemo distinguishes itself from the competition by measuring the performance in Bitcoin (BTC), regarded as a store of value/reserve asset/currency. This approach considers the long-term asset appreciation of BTC, which contributes to the long-term portfolio value growth while also enabling investors to earn fixed income/dividends measured in the underlying asset. The product also outperforms competitors in terms of annual return. “We seek to attract institutional-grade investors and increase the market capitalisation by providing an investment product that focuses on short-term digital assets market volatility and long-term market appreciation”, emphasises Zimin.
Customers already on board
Invemo’s new solution is now active and targets professional and institutional investors such as family offices, fund of funds and High-net-worth individual (HNWI). The company manages segregated investor portfolios while using third parties for funds deposits and custody. Currently, it accepts investor deposits through Sygnum Bank and Globitex. It uses Copper as a custody, solution to allow investors to hold funds in cold storage while accessing institutional grade liquidity and instruments. Invemo investors have complete control and overview of their accounts’ trading activity and access daily liquidity. Since the launch, the company has attracted five institutional customers.
(RAN)
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