Popular cryptocurrency depository service Haru launched its digital asset investment platform last month, capping off a 12 month period of successful expansion, including an 1000% increase in users, 10 new business partnerships, and an impressive $46,000,000 USD in traded digital assets.
The platform offers a fresh, modern alternative to its more rigid crypto hedge fund competitors. In its natural evolution of an already well-established service, Haru now offers crypto users a much lower fee structure, varied account options with no ‘lock-up’ of funds, and exciting high interest investment options like the new Haru X account.
Haru X – Low Risk for High Reward
Managed by global asset management partners working under strict selection criteria, Haru X is the first crypto fund to allocate investors’ assets into a balanced multitude of low to medium risk strategies, in order to generate increased profit whilst taking on the smallest possible risk.
Due to the effectiveness of this strategy, Haru X can offer its users something that its competitors can’t, a service with no management fee, and a performance fee of only 1.8%, which users only have to pay if they secure an annual return of at least 10% from their investment. Simply put, Haru X users will only have to pay a fee if they make a profit themselves.
Haru X targets an impressive 25% APR using bitcoin in its two-fold quantitative trading strategies. Haru’s two-fold strategies include a ‘pricing & settlement’ mechanism for future markets, and market-making to achieve this target. Haru X users will also benefit from a fortnightly update on the portfolios progress, with reports available on the website.
Haru: Deposit Lending Evolved
Crypto lending is quickly increasing in popularity. Rather than liquidating a potentially profitable investment, crypto users are taking advantage of this fast, simple solution for short-term loans, using their portfolio as collateral. Most such companies use a ‘lending-deposit’ model to offer investors the option to deposit their crypto on a platform, in exchange for a loan, to be paid back later with interest.
Although convenient, there are still some setbacks to this solution. Crypto lending platforms often require investors to deposit crypto to a higher value than that actual loan, so that platforms can hedge the risk of price volatility. These types of loans are often taken out for margin trading, but when borrowers don’t make the profit to pay off the loan interest, they end up paying back the loan at a loss.
Haru offers investors a more evolved alternative to the traditional lending-deposit model. When Haru users deposit their funds, they get allocated into institutional loans, and a sophisticated asset management process takes place. With management assistance from partners like Block Crafters, and low-risk investment diversification strategies, such as quantitative and arbitrage trading Haru can offer superior stability and competitive interest rates for all crypto investors.
It is because of these strategies that Haru can offer its users more secure service, with profitable returns on investment regardless of market volatility, and without the downsides of the lending-deposit model.
Crypto Fund Industry Overview
The crypto hedge fund market has been growing consistently since 2018, with over 800 crypto funds and offices in over 80 countries globally today. Cumulative crypto funds (AUM) surpassed $20 billion for the first time in 2020, gaining nearly $3 billion over the previous quarter, with 90% of hedge fund investors comprised of either family offices or high net worth individuals.
Measured by the CFR Crypto Fund Index, Q2 2020 saw crypto funds outperform Bitcoin, despite its growth of over 40%. Despite this impressive growth, crypto funds are still a relatively new and rapidly appreciating market, and typically of such markets, the pace of new crypto fund launches slowed in the first two quarters of 2020.
The CFR Crypto Fund Index measured the return of around 70 actively managed crypto funds, and revealed that they returned 24.88% on investment in Q2, 2020. Despite this very strong return, the numbers follow a pattern of shrinking growth, with the median crypto hedge fund return totalling 30% in 2019, and 46% in 2018. In this time the average management fee also increased from 1.7% to 2.3%.
Haru X vs The Competition
Unlike 90% of crypto hedge fundsincluding the market leaders who are only open to accredited investors,Haru is easily accessible to public investors.
Haru has a mission to remain accessible to all types of cryptocurrency users, not just the rich and institutional investors. For this reason the asset management platform has no minimum investment investment requirement. Juxtaposed to Haru, two of the leading crypto hedge funds that were assessed had a minimum investment of 25,000 USD, and 100,000 USD respectively.
Haru also leads the way in fees, with a low performance fee of 1.8% only applicable to annual returns of 10%, and no management fee at all. This looks even more impressive when you compare it to industry averages of 2.3% for management, and a sizable 21.1% for performance.
With such a gulf in fees, superior accessibility, better usability, and the continuing depletion of both new crypto hedge funds, and their investment returns, there is no reason not to make a deposit today, and start earning up to 15% on your crypto with Haru.