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XBTO

Trend

Portfolio Diversifier
Overview

XBTO Trend is a systematic strategy aiming to profit from both upward and downward movements in the liquid cryptocurrency markets (top 50 and beyond).

This is achieved by taking long (buy) or short (sell) positions based on observed directional trends within these markets.

These trends are identified through comprehensive analysis of historical market prices across multiple timeframes.

Key highlights

Designed for institutional investors, the XBTO Trend Fund offers a disciplined, algorithm-driven approach to navigate and profit from the complexities of the cryptocurrency market.

Superior risk adjusted returns

XBTO Trend, as a long/short strategy, delivers superior risk-adjusted returns, providing clear benefits to strategic long-only asset allocations.

Maximized trading efficiency

The fund focuses on the top 50 highly liquid instruments to maximize execution and reduce potential liquidity risks.

Strong diversification

The fund employs a multi-horizon strategy, integrating short, medium, and long-term trends to construct a robust portfolio that diversifies across market cycles, thereby reducing volatility and enhancing stability.

Institutional grade infrastructure

XBTO Trend is an investment fund registered with the Bermuda Monetary Authority (BMA) and managed by XBTO International Ltd.* Diamond Hands leverages the resources of the entire XBTO Group, including technology, quantitative research, finance, legal and compliance.

* XBTO International Ltd is a licensed digital asset business regulated by the Bermuda Monetary Authority (BMA) and is being registered as a Class B person under the Investment Business Act 2003 (as amended) (IBA).
Performance (net of fees)

XBTO Trend deploys a diversified set of systematic strategies and aims to generate attractive and consistent risk-adjusted returns. XBTO Trend went live in Feb 2024 and all other returns are backtested returns.

Net performance (backtest and live data)*
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*All performance numbers from Jan 2020 to Nov 2023 are backtested returns.Trend was trading live since Dec 23 and was formally incepted in Feb 2024, where returns are net of fees. There is no guarantee that the market conditions during the past period will be present in the future.
**Performance year to date includes simulated returns (Jan‘24) and net live performance (Feb’24 onwards). YTD (net of fees) live performance is 14.06%.
NAV (Composite backtest + live)

Performance metrics (since Jan 20)

Realized performance

Sources: S&P500, Company Data.
XBTO Trend – under the hood

The XBTO Trend strategy is characterized by a fully systematic methodology that operates continuously around the clock, 24/7. This approach has demonstrated profitability in both long and short positions across a broad spectrum of cryptocurrencies during backtesting and live performance.

Key features
  • Dynamic universe

    Trades a dynamic selection of 180 cryptocurrencies in the perpetual futures markets.

Capturing positive performance during market downturns

XBTO Trend effectively leverages sustained market movements to secure positive returns, even during downturns, thereby offering investors a dependable hedge against tail risks and bolstering performance across volatile market conditions.

XBTO Trend net positions effectively align with Bitcoin's 30-day momentum*, capturing market outperformance.

  1. Positive momentum and long positions: When Bitcoin was trending up and positions were predominantly long, thus benefiting from rising prices.

  2. Negative momentum and short positions: When Bitcoin was trending down and positions were predominantly short, XBTO Trend profited from declining prices.

*"30-day momentum" measures the strength of an asset’s price trend over the past 30 days by comparing the current price to the price 30 days ago. Positive momentum indicates an upward trend, while negative momentum suggests a downward trend.
XBTO Trend applied to a broader portfolio

Adding a small allocation of XBTO Trend to 60/40 portfolio represents an opportunity to both improve returns and reduce risk of the combined portfolio.

Sources: Company Data, S&P. Hypothetical simulated performance results have certain inherent limitations. There is no guarantee that the market conditions during the past period will be present in the future.
Risk management

XBTO Trend implements a robust multi-layer risk management framework.

Proprietary risk systems

The Fund deploys its own proprietary risk systems for real-time monitoring of key risk metrics.

Proprietary risk dashboard: PNL, exposure, VaR, drawdowns, volume, slippage, collateral breakdowns, commissions and margin usage. Slippage monitoring and daily reconciliations.
Automated alerts: Performance, exposure changes, new trades, VaR levels.

PM monitoring qualitative and quantitate predefined rules/limits

Adhering to well defined portfolio management guidelines and exposure limits:

Independent risk oversight: Factor analysis, stress testing and VaR measurement, PM potential intervention (rarely) for risk reduction.
Risk reporting: Comprehensive analytics providing insights such as potential drawdowns at a specific confidence levels and position limits.

Governance framework - XBTO Risk Committee

Provides independent management and oversight of the investment management activities.
Defining governance, control and supervision framework:

Portfolio reviews: periodic reviews of allocations, risks, research priorities etc.
Formal policies:
collateral management and risk limits approved by board of directors.
Regulation: Regulatory reporting, XBTO International Ltd is a licensed digital asset business regulated by the BMA.

XBTO overview
  • From 2015 through 2022, XBTO operated exclusively as a proprietary crypto trading and investment firm.
  • Over the years we became a leading infrastructure participant contributing over 2% of global crypto derivatives volume and investing in some of today’s major players.
  • In late 2022, the failings of the industry convinced us to transition into a digital assets investment platform to help institutional players ‘safely’ access digital assets.
  • In 2023, we have completed the acquisition of Stablehouse to round out the core infrastructure and capabilities required to serve the needs of institutional clients and HNW individuals.
  • We are licensed by the Bermuda Monetary Authority and have a presence in 5 locations: Bermuda, Miami, New York, London, Paris and Abu Dhabi next.
Our key partners
Leadership

XBTO is led by financial industry veterans with an extensive background across firms such as SAC Capital, Goldman Sachs, and State Street.

  • Phil Bekhazi | CEO, Founder | XBTO
    Phil Bekhazi

    CEO, Founder

    Prior experience:
    SAC Capital Advisors, Citibank, Calypso Technology
    >10 years in digital assets, >20 years in financial services

  • Javier Rodriguez | CCO | XBTO
    Javier Rodriguez

    CCO

    Prior experience:
    Goldman Sachs, Barclays Global
    >25 years in Investment  management

  • Michael Chauliac | COO | XBTO
    Michael Chauliac

    COO

    Prior experience:
    Goldman Sachs, Barclays Global
    >25 years in Investment management

  • Richad Idris | Co-Founder, CTO | XBTO
    Richad Idris

    Co-Founder, CTO

    Prior experience:
    Société Générale, Exane, Natixis
    >10 years in digital assets, >20 years in financial services

  • Mark Brazier | CFO | XBTO
    Mark Brazier

    CFO

    Prior experience:
    PricewaterhouseCoopers, GFI Group, LiquidX
    >20 years in financial services

  • Nicolas Genechesi | Head, Portfolio Management | XBTO
    Nicolas Genechesi

    Head, Portfolio Management

    Prior experience:
    Forum Asset Management, Bainbridge Partners, Timber Hill, Prince St Capital
    >7 years in digital assets, >20 years in financial services

  • Walton Comer | Senior Advisor | XBTO
    Walton Comer

    Senior Advisor

    Prior experience:
    Falcon Bridge Partners, SAC Capital Advisors, Thornhill partners, Lucid
    >10 years in digital assets, >20 years in financial services

  • Mimo Ousseimi | Senior Advisor | XBTO
    Mimo Ousseimi

    Senior Advisor

    Prior experience:
    Bank of America (Merrill Lynch), Goldman Sachs, State Street Research and Management Company
    >30 years in financial services

Key terms
Name of fund
XBTO Crypto Opportunities Fund SAC Ltd.
Cell name
XCOF Diamond Hands Trend
Investment currency
USD -or USDC / USDT
Minimum investment
USD $100,000
Subscriptions
Monthly
Liquidity
Monthly, 45-day notice
Management fee
2%
Performance fee
20%
Investment manager
XBTO International Ltd
Eligible investors
Accredited investors
Fund registration
Bermuda Monetary Authority Professional Class B
Auditor
RSM Cayman
Fund administrator
NAV Consulting
ISIN
BMG316631263
Achievements

XCOF Diamond Hands has been founded on a framework of robust risk management and strong governance.

  • 2015
    XBTO was founded and became the first institutional market maker on several major exchanges.
  • 2016
    XBTO opens Paris office.
  • 2017
    XBTO expands into OTC trading, mining and venture capital.
  • 2018
    XBTO expands into Bermuda.
    XBTO joins Blockstream Liquid as a founding node.
  • 2019
    XBTO participates in the first block trade of US-regulated bitcoin futures.
    XBTO obtains Bermuda digital assets license.
  • 2020
    XBTO participates in first micro bitcoin futures trade on CME.
    XBTO expands into Miami.
    XBTO makes a strategic investment in the seed round for Stablehouse, alongside Dragonfly Capital, Liberty City Ventures and Coinbase Ventures.
  • 2021
    Stablehouse secures partnership with the world’s 5th largest fund administrator, Apex for custody & trading white-label platform.
    XBTO becomes the main corporate and jersey sponsor for Inter Miami's Major League soccer team co-owned by David Beckham and Jorge Mas.
  • 2022
    XBTO’s streaming markets volume grows by 2x.
    Proprietary quantitative strategies returned 12.3% in 2022 through the bear market.
  • 2023
    XBTO acquires institutional custody and trading platform Stablehouse.
    Daily volume hit $300,000,000 per day across company verticals.
    XBTO appoints former Goldman MD Javier Rodriguez as Chief Commercial Officer.
Disclaimer
This Presentation (the “Presentation”) is intended solely for the use of prospective investors in determining whether or not to pursue any opportunities with XBTO Crypto Opportunities Fund SAC Ltd., XBTO Global Ltd, XBTO International Ltd. Stablehouse Ltd or any of its group or related companies (together, the “Company”).

XBTO International Ltd and Stablehouse Ltd are licensed to conduct digital asset business by the Bermuda Monetary Authority.  The Presentation is of a proprietary nature  and the information contained herein may not be reproduced or redistributed in whole or in part, in any format, without the express written approval of the Company.

By reviewing this Presentation, the recipient agrees that it will, and it will cause its directors, officers, employees, consultants, agents and representatives to, use the Presentation and all of the information contained therein only to evaluate any opportunities with the Company and for no other purpose. This Presentation contains confidential material which is non-public information concerning the Company. This Presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or assets of the Company, nor should this Presentation be construed to indicate that the business of the Company remains unchanged since the date of this Presentation.

All information contained herein has been provided by the Company or other sources that the Company deems reliable. This Presentation includes certain statements, estimates, and projections provided by the Company with respect to its anticipated future performance. Such statements, estimates, and projections reflect various assumptions concerning anticipated results. No representations or warranties of any kind are intended or should be inferred with respect to any economic return from the Information.

The products, product names, logos, brands, and their trademarks featured or displayed within the Presentation are the property of the Company or upon the consent of their trademark owner.

This Presentation does not purport to contain all of the information that may be required to evaluate any transaction, and any recipient hereof should conduct its own independent analysis of the Company and the data contained or referred to herein. The recipient should rely solely on the representations and warranties made to it by the Company in the executed definitive agreement regarding the transaction (if any). No party has any obligation (whether express or implied) to offer, accept or negotiate any agreement.

Any investment opportunity herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Any investment opportunity herein is available only for Non-US Accredited Investors. It is the responsibility of each person outside of the United States to comply with any applicable laws and regulations of their jurisdiction before accessing or using this investment.

Past performance, if any, does not guarantee or indicate future results or returns. The value of investments can fluctuate, and investors may lose all or more than their original investment. Investment outcomes are subject to various market, economic, and other risks that may cause future returns to differ from historical performance.

This material is provided for educational purposes only and does not constitute an offer to buy or sell securities, products, or services in any jurisdiction where such an offer is illegal or to any person for whom this offer is illegal.  None of the information discussed herein should be provided to any retail customers.

If you have a complaint or concern about any aspects of our products or services provided in the Information, please contact our Customer Support at support@xbto.com. Please provide clear details of your nature of complaint and we will promptly acknowledge receipt and investigate as necessary.

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