When viewed from a traditional investing lens, bitcoin may seem like a risky bet. The technology is still relatively new, the price is notoriously volatile and it’s not uncommon to hear investors caution newcomers not to invest more than they can afford to lose in BTC.
But the performance of Off The Chain Capital, a digital currency investment firm that focuses on value investing in bitcoin, tells a different story. As one of the best-performing funds in the space, it has shown that reliable performance and BTC can go hand in hand.
“We’re trying to buy dollars-worth of bitcoin with 50 cents,” explained Brian Estes, the managing member and chief investment officer for Off The Chain. “We’re the only value manager in the space that we know of. Everyone is trying to do venture capital investing, and we’re using a Warren Buffet style for finding deeply discounted investment opportunities.”
With over $30 million worth of assets under management, the fund has reached number one blockchain fund rankings from financial services companies Vision Hill Group and Hedge Fund Research, Inc., according to Estes. The fund does not use leverage, is long only and has very little turnover. It also maintains a particularly bullish outlook on BTC in the near future — it utilizes four models to determine the future price of bitcoin and all four indicate that it could be over $100,000 by the end of 2021.
According to a performance report shared with Bitcoin Magazine, Off The Chain Capital was up 29 percent in July 2020, marking a 101 percent increase across the year to date. Over the last three years, Off The Chain reported returns that far outpaced both the S&P 500 Index and the price of bitcoin itself. Its dollar-weighted (actual) returns for investors in this period was more than five times that of bitcoin and 27 times the S&P 500.
But what may be most remarkable about this performance is the fact that the fund is proving a value narrative for bitcoin, demonstrating…