Gustavo Cunha, one of Reset’s partners, which will have cryptocurrency funds. Photo: Gustavo Cunha.
The first cryptocurrency fund of the Reset Asset Management, created by market specialists Gustavo Cunha, Bernardo Quintão and André Montenegro. The Reset Defi Yiled Fund is focused on “taking advantage of the various inefficiencies of the crypto market, without incurring the risk of volatility in digital currencies,” Cunha told exclusively to Blocknews.
This fund is in the Cayman Islands and the management structure in the British Virgin Islands. The company’s next cryptocurrency funds are also expected to be in these locations. There is a feeder fund in Luxembourg, that is, to raise funds from Europe and Asia, mainly, and transfer it to the main one in Cayman. There will also be a feeder in Brazil in 2022.
Fund management is active, therefore, managers analyze the market and make resource allocation decisions. Thus, different from funds that follow an index, for example, such as ETFs. The minimum investment is US$100,000 (about R$600,000). Since it is a crypto fund, it falls into the “alternative” category. That’s why the input value is in this range, explains Cunha. Quotas are monthly and withdrawal takes 60 to 90 days.
The fund focuses on decentralized finance (DeFi) and arbitrage, which is buying and selling an asset – in this case Crypto – taking advantage of price differences in different markets. For example, you sell a crypto in one place and buy it somewhere else where it’s cheaper.
According to him, taking advantage of the various inefficiencies of the crypto market means, for example, the arbitrage between exchanges and operations that involve cash purchase of cryptoactive assets and sale in the future. Situations like this are due to the fact that the market is in formation and is increasingly complex, he added.
Reset’s cryptocurrency funds will all be regulated
The three partners have been in the crypto market for a few years. Due to the short lifespan of the segment, this makes them “veterans” in the area. Cunha managed resources for over 20 years in traditional financial institutions, until he reached the world of cryptocurrencies. In addition, he founded the FinTrender. Quintão also has experience as an angel investor and consultant in crypto projects. Montenegro is an investor in companies, as well as a partner in tokenizer Liqi Digital Assets.
According to Cunha, the idea of ​​setting up funds started last year. joined farmhouse and then Montenegro arrived. The group spoke with lawyers in 16 jurisdictions to determine where to have the fund. Reason: “We knew it would be born global. And we want to make the state of the art of regulated funds”, he stated.
Reset is the English word for reset, that is, it carries the idea of ​​starting over. It’s a business to give options to those who want to enter cryptos, says the partner.
Virgin Islands and Cayman met operating and taxation requirements
The British Virgin Islands and Cayman served two points better: operational, which includes the existence of regulation, and tax levels that do not hinder investments”. The search started for Switzerland and Luxembourg. In the case of Switzerland, taxes were an issue. In Luxembourg, it is necessary to have an authorized crypto custodian, which does not yet exist. “It will and that’s why we’re standing there.”
The idea is to have other funds in cryptocurrencies. The partners are working on a project that will target digital currencies and is expected to launch in the first quarter of 2022. “It’s to buy the next Amazon, Apple from the decentralized world of crypto. Other funds can range from venture capital to even a meme fund, “which is kidding, but it’s not, because you can use artificial intelligence to track trends and follow that for investment.”
The partners have not yet defined whether there will be a ceiling to close the fund. “We will discuss this later. There is a lot of money because the cryptocurrency market is very liquid”. The forecast is to raise US$ 10 million (about R$ 55 million) by April. Part of this comes from Brazil, where there is also a feeder. But there are already European interested parties, says Cunha.