The Financial Market Authority Liechtenstein has approved an asset-backed blockchain bond. The “IVO Blockchain Diversified Bond” could set a new standard for professional blockchain investments in Europe and beyond.
With Bitcoin pushing through the $8,000 mark for the first time in six months, all eyes are on blockchain markets. The “Crypto Winter” is history, they say, and “Crypto Spring” has started. But investors beware: The shock from the previous bull run in 2017, and the following one-year bear market shall not be forgotten.
The blockchain asset class provides excellent advantages for investors who know the rules of the game. However, investing in crypto-markets requires an in-depth understanding of the market’s characteristics and the underlying technology. Most investors do not have this expertise.
Liechtenstein-based INVAO Group wants to fill the gap. The professional blockchain investment management firm has structured a token – the IVO Blockchain Diversified Bond – which enables token holders to invest in a diversified portfolio of blockchain assets, by holding only one single token. Last week, the Financial Market Authority Liechtenstein (FMA) approved the token’s securities prospectus.
INVAO Group: professional blockchain investment management made in Liechtenstein
Frank Wagner and Frank Gessner founded INVAO Group in 2017. Both are successful serial entrepreneurs and early pioneers of the internet. Gessner is a co-founder of Intershop, a NASDAQ-listed e-commerce firm that had temporarily been valued more than $11bn. Recognizing the growth potential of blockchain technology, Wagner and Gessner launched INVAO Group and developed the IVO token.
IVO is based on an actively managed portfolio of blockchain assets, such as project tokens and digital currencies. The investment management team continuously screens the market for opportunities and selects up to 150 assets for its portfolio. Additionally, INVAO leverages AI-based High-Frequency Trading as well as arbitrage trading strategies. With these tools, the IVO token had generated an alpha of 10.81 percent compared to its benchmark index CCi30 since 01st December 2018.
INVAO has already started to offer the IVO token to selected investors in a private sale. With the FMA’s approval, the company is now preparing the launch of a Europe-wide Security Token Offering (STO). Thus, the IVO token will enable institutional and retail investors to invest in a fully diversified and actively managed blockchain portfolio, compliant to EEA- law.
Blockchain as an asset class: effective portfolio diversification
Blockchain has gained in popularity as an alternative investment vehicle, for multiple reasons: Firstly, Bitcoin, and most altcoins, have a near-zero correlation to traditional asset classes such as fixed income or equity. Thus, if traditional markets turn bearish, blockchain-assets can provide effective downside protection.
The same argument holds true for other alternative investments such as real estate or precious metals. However, the issue with many of these assets is to determine their current market value. As digital assets are listed on exchanges, their prices are recorded in real time.
Secondly, blockchain assets have outperformed traditional asset classes over the past years. Looking at historical Sharpe Ratios, a measurement commonly used to compare risk-adjusted returns of different assets or asset classes, Bitcoin has outperformed fixed income, equity, gold, and real estate over the past five years. Hence, blockchain assets do not only provide downside protection but can also significantly improve the portfolio’s upside potential.
INVAO Group’s IVO token will enable investors to reap these benefits by investing in only one single token. With a team of seasoned investment professionals, a global presence with representations in Liechtenstein, Berlin, Dubai, and Singapore, and official backing by an EEA regulatory body, INVAO could set a new standard for professional token investing in Europe and globally.