Hello everyone, this is our second monthly project update. As mentioned last time we will be posting an update here on Medium every month so that all significant progress is documented in one place. We will cover recent developments of the crypto market in general, a clarification of Insula’s target market and finally what we have been working on recently.
The Crypto Market
Bitcoin has gained over 35% this month at the time of writing (and is extremely close to breaking the 2017 peak of $20000), while Ethereum is up over 53% for the month. Given that Ethereum is still significantly further away from it’s all time high than Bitcoin it will be interesting to watch the ETH/BTC ratio in the coming weeks to see how much of a rotation from Bitcoin into other cryptocurrencies there is. Typically Bitcoin pushes ahead first and then when it consolidates altcoins make their largest moves.
More institutions announced they were gaining Bitcoin exposure in recent days, of particular note is Guggenheim Partners, a hedge fund with assets totalling over $275 billion that is considering a $500 million Bitcoin purchase. We expect more institutions to follow suit due to a few specific factors. The pull of the potential gains of the crypto market is becoming stronger all the time and the push away from holding cash is being keenly felt by institutions. Many are anticipating a sharp increase in inflation in the near future and are positioning themselves appropriately by purchasing cryptocurrencies. At the moment this seems to be almost exclusively Bitcoin but we are confident that the diversification that Insula specialises in will come to be viewed as an essential next step for large investors to improve the sophistication of their crypto investments.
Update on Insula’s market positioning: Direct ownership of cryptocurrency fund shares, dedicated to family offices & HNWI’s
Our current goal is to connect with family offices to onboard new investments in our blockchain-based crypto fund. We are targeting this market, because we believe that there is a growing demand to invest in Decentralized Finance (DeFi) and a lack of solutions that matches the value of private office investing.
Family offices usually enjoy direct ownership of collectibles and alternative investments, while being autonomous and sovereign over their investment decisions: this is what Insula allows you to do. Additionally, family offices have the flexibility to explore this market while most financial institutions can’t offer direct access, because they are bound by regulations.
Investing with Insula today is an opportunity for private offices to keep their edge. In fact, the goal of family offices is to effectively grow and transfer wealth across generations. We do not see family offices who have been here for decades or even centuries risking an intermediation via centralized entities, due to the observed number of weekly bankruptcies, hacks and collapses amongst centralized crypto markets providers.
The market is still maturing and shutdowns happen every week. Year to date, 75 Crypto Exchanges Dead in 2020 — (according to Cryptowisser).
This is why at Insula we chose to fully decentralize and disintermediate: the entire point of cryptocurrency is that it can be directly owned. As soon as this advantage is lost, investing in crypto has a very limited use beyond speculation and inflation-hedging. Family offices play the long game, while short-term speculation is embraced by retail investors and trading firms.
We chose to offer more than simply owning Bitcoin or Ethereum: we offer a diversified crypto fund of tokens that is owned and custodied by the client themselves (in this case, the high net worth individual or the family office). Investors get to use our investment expertise but remain direct owners of their basket of cryptocurrencies in our fund.
This is why Insula’s portfolio is diversified and long only: the only directional assumption here is that the overall crypto market will continue to grow over time (over the coming years & beyond).
We consider forks and altcoins as the Cambrian explosion of crypto: a great divergence is occurring away from just Bitcoin and Ethereum. Bitcoin maximalists are becoming an endangered species. The emergence of negative price correlations between different cryptos is the tangible manifestation of this emerging diversity within the crypto market.
This is how we build diversified crypto portfolios that are not only subject to Bitcoin’s price swings.
Family offices are comfortable with self custody of their assets: they already do it with collectibles through their own existing networks of custodians (fine art, jewels, wine etc.).
Insula is partnering up with providers allowing users to use Multi Party Computation (MPC) to offer the highest level of security to HNWI & family offices while they maintain ownership of their private key. Insula’s mission is to build on the foundation of Web 3.0: A decentralized network where users maintain control of their assets and identity.
A premium concierge service:
Insula chose to automate its investment strategy but to personalise its premium client relationships. To service this investor category, we created Insula Premium, a premium concierge service that gives unlimited support and attention to our existing investors.
Insula Premium is a tailor-made private banking service complementing our fully automated investment systems. “Even the 60-plus client generation has a growing affinity for technology. In particular, wealthy clients are early adopters of new technologies. Despite this affinity for technological innovation, these clients would prefer not to do without a personal advisor” according to finews.asia.
This is where the human face of Insula comes into play, to offer a five star customer-friendly service. If our customers have a question, they have someone reliable to talk to. Which at the moment does not exist in DeFi.
Insula Premium is a personal investment support service for investors in our funds. Premium costs 499 ISLA per month or 4999 ISLA per year.
Insula’s Recent Developments
Now onto Insula’s recent activities. Our Malta Fund returned 36% for the month of November and the assets under management (AUM) currently sits at over $26000. We also had our first fully disintermediated investment in the fund (meaning the investor completed the process with no contact with the Insula team). You can learn how to do this too via our newest YouTube video.
We have continued to make improvements to our website which can be found here at https://insulainvestments.com. A roadmap will be displayed on the site in the near future along with any events Insula has attended. Our CEO, Jules Becci recently spoke at a number of these including at King’s College London, at a roadshow run by LA Token and in an interview with Coinscrum.
In terms of the Insula Token (ISLA), it is now available to trade on two more exchanges; Balancer and Mooniswap. These are both decentralised exchanges and will give our users more choice in where to trade ISLA. Additionally, ISLA can now be searched for on Uniswap by searching for the list called isla.eth if you have not traded it there before. The Insula Token also has a new use case, holders can now stake ISLA to vote on proposals via our Aragon page.
Thank you for reading, you can learn how to invest in our fund at https://insulainvestments.com and look out for our next update at the end of December. Any questions about investing in our fund can be directed to firstname.lastname@example.org
The Insula Team
Disclaimer: The opinion expressed here is not investment advice — it is provided for informational purposes only.