FAQ

Established in 2018, BBShares is a leading digital currency hedge fund in Asia.

Bitcoin is a new thing and cannot be measured by traditional valuation model. If you simply mirror the traditional theories, you will miss a lot of investment opportunities. Buffett’s missed technology stocks such as AMAZON and GOOGLE were good examples.

Bitcoin is with asymmetric returns, which is a kind of once-in-50 years asset. For example, for an allocate of $5 out of $100, the downside is limited to $5, but the upside was over 100% in the past years. Therefore, from the perspective of asset allocation, 5% of digital assets can achieve a better return regardless for individuals or institutions.

The core of buying bitcoin is not the timing, but to control position. The overall digital currency market is not fully regulated, the market is highly volatile and the possibility of manipulation is huge, so it is difficult to grasp the entry point. On the contrary, as long as you control the position and enter in batches, smooth-in, you will not miss the opportunity of the bitcoin surging.

If you plan to buy Bitcoin in small quantities (less than USD $100,000) you can go to regulated exchange such as (COINBASE, GEMINI, etc.), but you need to pay the corresponding tax according to the local regulations.

If you plan to buy Bitcoin in large quantities (more than $100,000), it is recommended to purchase through professional digital currency hedge fund due to the complexity of the procurement process; the security of the private key and the compliance requirement during the process:

• If your asset is more than $100,000, it requires professional private key custodian service, there is huge risk in managing private key by individual, such as being stolen, lost, or even robbed;
• If the private key is stolen or problem occurs during transaction, there is currently no laws and regulations globally that can guarantee the legitimacy of Bitcoin /crypto transactions. Once disputes arise for large volume transaction, it is close to impossible for individuals to seek legal protection.

Purchase digital currency through regulated fund will ensure that:

• The fund is fully compliant and regulated by the government and is protected by the law;
• The fund is secure by leveraging hot and cold wallets; end to end encryption with 100% commercial insurance coverage to make sure that there is no risk of asset been lost or stolen;
• Based on the principle of serving the clients and ensuring the interests of clients, the fund is managed according to the Wall Street standards. The process is transparent and the performance is certified by third-party auditors/fund admin.

The volatility of digital currency is 8-10 times that of the traditional stock market. The conversion of the bulls and bears is very fast. If you only hold index funds, large capital will be lost in the short term in the case of volatile market; PWC 2019 digital currency hedge fund report pointed out that in the case of the bear market in 2018, Bitcoin fell by 72%, index funds fell by 80%, and funds using quantitative strategies had an appreciation of 8% instead, so it is necessary to use hedging strategy, futures and other products to manage your positions.

Quant funds will use position management and quantitative strategies to achieve sustained profitability in the bull market by adding chips while bear market leverage hedging, and control downside risks. In this way, by doing long or short, you can get excess profits in both bull and bear market.

The digital currency market is not efficient compared to the traditional securities market, and there are a large number of cross-exchanges and arbitrage opportunities. Digital currency asset ALPHA has a very low correlation with ALPHA in the traditional market, so the US dollar-based strategy is very suitable for allocation of alternative investments portfolio.

Currently Bitcoin futures have only one target asset which is bitcoin, and the yield is relatively low. In the long run, the diversified basket of crypto funds will benefit much more than a single bitcoin.

The risk of bitcoin futures is high. At present, the US SEC still believes market manipulation risks exist in bitcoin futures. There is a risk of Rollover every three months with losss in this period. With high leverage, there are huge risks in counter party and digital currency exchanges.

According to the market's latest bitcoin trust fund GBTC data, institutions are willing to pay 30% premium to purchase fund products such as GBTC instead of intervening in the futures market, which further indicates the institutions' conservative attitude towards risks and returns as well as their strong will of investing in fund products.

BBShares has been in operation since its launching in August 2018 with a history of credible and auditable performance record provided by licensed third-party fund administration in Singapore.

Individuals

Personal Investment Companies

Partnerships & Unincorporated Businesses

Trusts

Fund

Private Bank & Investment Adviser & Nominee Company

Charities & Not for Profit Organizations & Non Governmental Organizations

Clubs and Societies

*Excluding United States citizens or corporations

According to PWC 2019 Digital Currency Hedge Fund report, the median hedge fund charge is 2% management fee / 20% fund performance fee. BBShares also uses the 2/20 charging rules. In China, some of uncompliant funds charge 3/30 or even 3/40.

Investors, including individuals, funds and private companies, may contact BBShares directly or send email to SUPPORT@bbshares.com . We will assist you with registration and KYC process. After the verification, we will notify investors and assist you to fill out the subscription documents.

The first working day of each month is the subscription day. The subscription documents and funds should be credited one day before the opening date, so that the subscription can be completed smoothly on the day itself.

The redemption day is also the first working day of each month. Investors who need to redeem should fill out the redemption instructions 30 days before the corresponding redemption opening date and notify us. The redemption funds are generally credited within 7-10 working days after the redemption date.

There are three fund products for customers to choose when they fill up subscription forms.

BBShares Mega Cap Crypto Fund

BBShares Diversified Alpha Portfolio

BBShares Systematic Opportunity Fund

The decision of which fund to subscribe is usually made after client’s clear awareness of associated risk of each product. BBShares team member would help clients to understand the risk associated with each product during an onsite briefing or conference call, if remotely, and evaluate each client’s risk profile. Once the evaluation of clients’ risk profile is completed, fund product will be determined by clients and respective set of subscription form including KYC requirements will be provided by BBShares team. For example, if client choose to subscribe both Mega Cap and Diversified Alpha Fund after briefing and risk profile evaluation; there will be 2 sets of subscribe form to be provided.

BBShares uses the highest level of security protection to secure capital assets.

It has partnered with BITGO and KINGDOM TRUST, the world's top third-party hosting and insurance companies, to provide the cold wallet with multiple signatures guarantees and to provide commercial insurance mechanisms.

BBShares is registered in Cayman with tax preference. BBShares also has a USD bank account in the US.

It cooperates with Singapore fund administration service providers for accounting and NAV calculations.

For quantitative transactions that require high liquidity, BBShares uses the digital asset management system, MatrixOne, built by the partner for account management, transaction records, and multi-signatures.

The BBShares Fund currently has Cayman license that allows cryptocurrency transactions and is applying for Hong Kong SFC No. 9 license.

The BBShares Fund is regulated by the Cayman Financial Management Authority (CIMA) and has CERTIFICATE, which can legally and compliantly invest and manage cryptocurrency funds. The legal documents stipulate that cryptocurrencies can be invested and traded. It can authorize the operation of crypto funds in Singapore, but it requires additional licenses when raising funds in local publicly.

BBShares provides institutional investors with access to overseas US dollar legal currency for investment in digital currency, and it has full compliance operations and fund service providers, including administrators, auditors, fiat currency custody, digital currency custody and commercial insurance to ensure the transparency, fairness, and the security of the fund and assets during operation.