In this Hup Bitcoin podcast Arthur Stolk, founder of the Dutch Bitcoin – and crypto fund Icoinic, will be the guest. For them, 2020 is the year of the breakthrough. Stolk: „We are outperforming right now.“
Bitcoin fund Icoinic
The meeting was prompted by the merger between Icoinic and Cyber Capital, also in the Netherlands. The new merger name is Icoinic Capital, but they will keep the existing funds.
Cyber Capital is known for ideological reasons for having a fund without Bitcoin.
It is a cautious signal that the Dutch Bitcoin Trend App market is consolidating. At the end of last year, for example, it took over the smaller fund Synnofin from Deventer.
The Icoinic model in a nutshell: anyone who wants to trade in cryptocurrency from EUR 100 000 is welcome. They have developed an algorithm, with which they do on average between 10,000 and 30,000 trades a day on international crypto exchanges, but also at AMDAX in Amsterdam.
„On average we are only 8 seconds in a trade“.
– ARTHUR STOLK, FOUNDER ICOINIC CAPITAL
Icoinic manages EUR 13 million of assets, mainly of high net worth individuals from the Netherlands and Europe.
„We started the fund in February 2018. a bad time because the market just collapsed. However, the hype was short-lived and we were able to attract clients. In the bearmarket of 2018, we still beat the market with an 11% return.“
In 2019 we got new clients who had made a loss in 2018, a year that we closed with 25%. But in 2020 we see a new group that wants to diversify their portfolio. The narrative is always: a hedge against the financial system, but I have never heard that said.
In 2020, the algorithmic fund is working on its best year with a return of around 125% so far.
As is well known, stock exchanges and brokers are supervised by De Nederlandsche Bank. This is regulated differently for investment funds. These are registered with the Netherlands Authority for the Financial Markets under the Alternative Investment Fund Managers Directive.
This means that these funds are exempt from operating without a licence for the time being. At the same time, the European Commission wants to legalise digital assets. To this end, earlier this year they published the legislative proposal ‚Regulation on Markets in Crypto Assets‘ (MiCA).
A good development, according to Stolk.
„It simply creates clarity in our market. Companies then know which rules they have to comply with. It covers all types of digital assets. They also deliberately call it assets and not currencies. They see Bitcoin as an asset.“
Icoinic itself has the necessary procedures to prevent unnecessary risks. For example, they assign a certain risk score to each stock exchange. They trade on platforms such as Coinbase, Kraken, Bitstamp and Bittrex.
„But Binance and OKEx’s risk score is such that no activities take place there. We simply cannot find out who the owners are and where the funds come from“.
This episode was made possible by: Knaking, Bitcoin Master, Coinmotion and Probit. Interview by Wessel Simons.