Bitcoin Arbitrage Trade invests in Bitcoin (BTC) and fiat currencies (ex: US Dollars) allowing for not only excellent global liquidity, but also a safe trading market. Due to price differences across different exchanges Bitcoin Arbitrage Trade can purchase Bitcoins in lower priced markets and sell them in higher priced markets, automatically and simultaneously. Next, Bitcoin Arbitrage Trade waits for a favorable price reversal to execute a trade in the reverse order of the previous trade, or, according to market conditions…Our technology ensures this process is continuous and that every transaction is profitable.
Bitcoin Arbitrage Trade purchases in Bitcoins, but funds are saved in two forms: BTC and USD (or other fiat currencies.) At the end of each trading day before dividends are awarded to members the Fund ensures two things: an increase in the number of BTC and an equal increase in USD.
Fund (BTC) members will experience changes in the exchange rate of BTC:USD, but like holding Bitcoins in a wallet the amount of Bitcoins are 100% ensured to remain the same and can be withdrawn at any time. The benefit of investing in the Fund (BTC) is the daily Bitcoin dividends paid to members.
Fund (USD) members don't experience any currency exchange risks (USD:BTC.) The moment a member purchases Fund (USD) shares the shares' total value is calculated at the current exchange rate and will be the same exchange rate used on redemption of the shares. Regardless of exchange rate changes, the total assets of Fund (USD) members do not change except the increase from daily USD dividends. In regards to these members, Bitcoins held by Fund (BTC) members are the arbitrage tools of Fund (USD) members, and vice versa.
At the time of redemption, Fund (USD) members receive their original share value denominated in BTC, which can be immediately converted into USD for the full USD value of the original shares.
In addition, we have chosen to use large-scale exchanges that adhere to international standards to ensure funds are allocated safely.
How We Maintain Yields
First, Bitcoin assets and USD assets are maintained at a certain proportion to ensure maximization of arbitrage earnings. By controlling the scale of the two Funds we can keep our arbitrage operation within a specific scope.
Second, according to the market’s current liquidity we allow members to invest in the Fund, controlling the Fund’s total assets in order to allow us to maintain a relatively stable earnings rate. Therefore, after the Fund reaches a certain asset level there may be a period of time where no more additional investment in the Fund is allowed. When a member redeems their shares then other members can purchase shares up to the amount redeemed. Furthermore, if total market liquidity increases, the Funds earnings base increase which allows new opportunities for members to invest.
The Bitcoin Arbitrage Trade algorithm is constantly being improved to increase yields: the Fund’s algorithm sets a minimum rate of return for each transaction to increase the overall yield of the fund.