BLP Asset Management’s million-dollar cryptocurrency free investment fund has lost 56.3 percent of its value since its foundation.
A cryptocurrency free fund managed by three Brazilian bankers has lost half of its value despite showing positive performance over the past 16 months.
According to CoinDesk, the crypto asset free fund Genesis Block Fund of Sao Paulo-based BLP Asset Management has lost 56.3 percent of its value since its foundation. The biggest reason for this loss is that the fund, which rose 35 percent in 2019 and 47 percent from January 2020 to May, fell 78 percent in 2018, its first year.
The returns of BLP Asset Management are indicative of how the crypto funds received a hit in 2018. After the tremendous gains in 2017, the markets had a major collapse in 2018, and those losses still could not be recovered.
“The winter came right after starting the fund!”
For one period, BLP partner Axel Blikstad, manager of the regular revenue sales department for corporate customers at Banco Santander’s Brazilian branch, said, “We launched our fund on January 1, 2018 and winter came to the market soon after!” said. The Blikstad fund was set up with Glauco Bronz Cavalcanti, who once worked at Credit Suisse Asset Management in Brazil, and Alexandre Vasarhelyi, former employee of Credit Suisse, who was responsible for the treasury at Banco Pine.
Although 2018 was the year of losses for BLP Genesis Block, the fund managed to beat the Bloomberg Galaxy Crypto Index, which it set as a target in 2019 and beyond.
As it is known, Bloomberg Galaxy Crypto Index is a Galaxy Digital index fund that tracks the best cryptocurrencies that are at the top of the market value.
He suffered the most loss in April 2018
Investors need to put at least 100 thousand dollars to join BLP, but some or all of the money can be withdrawn once a month. The date when the value of the Genesis Block Fund fell the most was April 1, 2018, with 38 percent. The highest increase was May 2019, with 59 percent.
About BLP Genesis Block Fund, which works with individuals and corporate customers with high net assets, Blikstad informed that in addition to a $ 5 million fund now, they manage a $ 2 million fund from Brazilian local customers.
Blikstad also stated that complex hedging tools may have eliminated difficult market conditions in 2018, but BLP Asset Management is only a “bullish” crypto fund, saying, “We can enter an asset more or less than necessary, but we never sell it at a loss. We do not use any derivatives or lend our assets for extra profit. We can stake tokens, but we do not lend it as a loan. ”