Class L Shares: How to generate low-risk digital currency returns

Are you looking to get involved in digital currencies without incurring significant risk? If so, one way of achieving this objective is to invest in Class L interests issued by Crypto Asset Fund (CAF), a fund managed by Crypto Asset Management (CAM).

The basic purpose of these interests, or shares, is to generate compelling returns by lending investor funds out to participants in the digital currency markets. Basically, if you invest in Class L interests, you will receive returns on capital lent out to other investors. Tim Enneking, Managing Director of CAM, notes:

“L Class allows investors to ‘play’ in the crypto ‘sandbox,’ without all of the volatility and uncertainty. The class can only increase in value, but the level of the increase depends on interest rates. The amounts invested will only bear interest from lending which is 100 percent secured... How can it go down?”

So what makes buying these interests different from lending your money through an exchange such as Bitfinex?

Enneking points out two key differences:

Custom Algorithm:

The fund uses a custom algorithm that is designed to help investors generate strong returns. Enneking explains:

“We have written an algorithm that will automatically re-lend the assets (USD, BTC, ETH, whatever) at the best rate (actually, just under it to make sure it gets put to work immediately). If not, and if a lender has selected ‘relend’ on any platform, your assets will be ordered for borrowing at the prior rate at which they were lent out – which may then be too high to attract attention or may be far under the current market rate.”

Leveraging Multiple Exchanges:

CAF invests in many different platforms, each of which comes with its own sets of rules, as well as advantages and disadvantages. These exchanges are constantly adding (and removing) functionality and changing how they work. Further, CAF scours both exchanges and currencies to find the best possible rates at all times. Enneking’s firm works 24 hours a day, something that is not practical for individual investors.

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