XBTO

Diamond Hands BTC

Coin Accumulation
Overview

Diamond Hands (DH) is an actively managed options strategy aimed at BTC holders, designed to acquire BTC at favorable prices while generating yield through option premiums. The fund is BTC-denominated.

Our strategy is centered around writing put options to generate income, while also creating opportunities to acquire Bitcoin at lower prices. We prioritize coin preservation, aiming to protect your BTC holdings even in volatile markets.

Coin preservation and meticulous risk management are at the core of our approach, allowing us to navigate market fluctuations while aiming for attractive yield.

Investment highlights

Diamond Hands (DH) is an actively managed options investment strategy designed for investors with BTC holdings looking to generate yield on top of their existing holdings. The fund is denominated in BTC. This strategy is available to institutional and qualified investors only.

Coin accumulation

Diamond Hands aims to accumulate BTC at favorable levels by strategically buying the dip through options and volatility management.

Yield generation

Diamond Hands generates income through options trading and preserves the BTC principal through robust risk management.

Institutional grade infrastructure

Diamond Hands is an investment fund registered with the Bermuda Monetary Authority (BMA) and managed by XBTO International Ltd.* Diamond Hands leverages the resources of the entire XBTO Group, including technology, quantitative research, finance, legal and compliance.

Robust risk management

Drawing on more than 9 years of mastery in digital asset trading and risk management, we leverage our strong foundation in traditional finance to expertly navigate the ever-evolving crypto landscape.

* XBTO International Ltd is a licensed digital asset business regulated by the Bermuda Monetary Authority (BMA) and is being registered as a Class B person under the Investment Business Act 2003 (as amended) (IBA).
Strategy outcomes across market conditions
  • UP trending market

    Fully benefit while preserving initial Bitcoin position

  • Range-bound market

    Option premium and Bitcoin accumulation

  • Bear market

    Capital preservation and Bitcoin accumulation

Investment process - highlights
  • 1. Sell Put Options

    The Fund systematically sells put options for a portion of its NAV until the options are exercised, triggered by a Bitcoin price pullback. Essentially, the Fund is compensated to “buy the dip”.

Net returns (BTC)

Diamond Hands is a bitcoin accumulation strategy that aims to preserve initial Bitcoin capital and generate yield in Bitcoin. 2019 to 2023 returns are backtested returns.

52.21

Total BTC accumulated for 100 BTC of initial capital (net of fees)*

-3.86%

Max
drawdown*

*Indicative average based on composite backtest and live performance.
BTC accumulation (max notional exposure of 65% of AUM)
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Diamond Hands NAV (in BTC)
Key performance metrics
(since Jan-2019, net of fees)*
* Performance numbers up until Dec-23 (inclusive) are simulated numbers net of fees. There is no guarantee that market conditions during the past period will be present in the future.
Hypothetical simulated performance results have certain inherent limitations. There is no guarantee that the market conditions during the past period will be present in the future.
Historical performance vs. Passive BTC exposure (USD)

Investing existing BTC holdings in a BTC-denominated accumulation strategy not only generates yield but also strategically acquires additional Bitcoin at favorable prices during market pullbacks. This approach can enhance both absolute and risk-adjusted returns in USD terms by growing BTC holdings over time.

Impact to Passive BTC exposure - key metrics  (since Jan-2019)**
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** Performance numbers up until Dec-23 (inclusive) are simulated numbers net of fees. There is no guarantee that market conditions during the past period w1ill be present in the future.
*** Adjusted Maximum Drawdown represents the reduction in drawdown experienced when investing BTC holdings in DH BTC, compared to simply holding BTC passively.
Risk management

Diamond Hands implements a robust multi-layer risk management framework.

Proprietary risk systems

The Fund deploys its own proprietary risk systems for real-time monitoring of key risk metrics.

Proprietary risk dashboard: PNL, exposure, greek sensitivities, volatility surface generation, VaR, drawdowns, volume, funding rates, volume, slippage, collateral breakdowns, commissions and margin usage.
Automated alerts:
Performance, exposure changes, new trades, VaR levels.

PM monitoring qualitative and quantitate predefined rules/limits

Adhere to well defined portfolio management guidelines and exposure limits:

Stop Losses: All “accumulated delta” exposure actively risk managed with 5 to 10% stop losses.
Strategy limits: well-defined Value at Risk (VaR) limits to control potential losses at a specific confidence level, position limits to manage exposure effectively.

Governance framework - XBTO Risk Committee

Provides independent management and oversight of the investment management activities.
Defining governance, control and supervision framework:

Portfolio reviews: periodic reviews of allocations, risks, research priorities etc.
Formal policies:
collateral management and risk limits approved by board of directors.
Regulation: XBTO International Ltd is a licensed digital asset business regulated by the BMA.

XBTO overview
  • From 2015 through 2022, XBTO operated exclusively as a proprietary crypto trading and investment firm.
  • Over the years we became a leading infrastructure participant contributing over 2% of global crypto derivatives volume and investing in some of today’s major players.
  • In late 2022, the failings of the industry convinced us to transition into a digital assets investment platform to help institutional players ‘safely’ access digital assets.
  • In 2023, we have completed the acquisition of Stablehouse to round out the core infrastructure and capabilities required to serve the needs of institutional clients and HNW individuals.
  • We are licensed by the Bermuda Monetary Authority and have a presence in 5 locations: Bermuda, Miami, New York, London, Paris and Abu Dhabi next.
Our key partners
Leadership

XBTO is led by financial industry veterans with an extensive background across firms such as SAC Capital, Goldman Sachs, and State Street.

  • Phil Bekhazi | CEO, Founder | XBTO
    Phil Bekhazi

    CEO, Founder

    Prior experience:
    SAC Capital Advisors, Citibank, Calypso Technology
    >10 years in digital assets, >20 years in financial services

  • Javier Rodriguez | CCO | XBTO
    Javier Rodriguez

    CCO

    Prior experience:
    Goldman Sachs, Barclays Global
    >25 years in Investment  management

  • Michael Chauliac | COO | XBTO
    Michael Chauliac

    COO

    Prior experience:
    Goldman Sachs, Barclays Global
    >25 years in Investment management

  • Richad Idris | Co-Founder, CTO | XBTO
    Richad Idris

    Co-Founder, CTO

    Prior experience:
    Société Générale, Exane, Natixis
    >10 years in digital assets, >20 years in financial services

  • Mark Brazier | CFO | XBTO
    Mark Brazier

    CFO

    Prior experience:
    PricewaterhouseCoopers, GFI Group, LiquidX
    >20 years in financial services

  • Nicolas Genechesi | Head, Portfolio Management | XBTO
    Nicolas Genechesi

    Head, Portfolio Management

    Prior experience:
    Forum Asset Management, Bainbridge Partners, Timber Hill, Prince St Capital
    >7 years in digital assets, >20 years in financial services

  • Walton Comer | Senior Advisor | XBTO
    Walton Comer

    Senior Advisor

    Prior experience:
    Falcon Bridge Partners, SAC Capital Advisors, Thornhill partners, Lucid
    >10 years in digital assets, >20 years in financial services

  • Mimo Ousseimi | Senior Advisor | XBTO
    Mimo Ousseimi

    Senior Advisor

    Prior experience:
    Bank of America (Merrill Lynch), Goldman Sachs, State Street Research and Management Company
    >30 years in financial services

Key terms
Name of fund
XBTO Crypto Opportunities Fund SAC Ltd.
Cell name
XCOF Diamond Hands BTC
Investment currency
BTC*
Minimum investment
USD $100,000 equivalent in BTC
Subscriptions
Monthly
Liquidity
Monthly, 45-day notice
Management fee
1%
Performance fee
10%
Investment manager
XBTO International Ltd
Eligible investors
Accredited investors
Fund registration
Bermuda Monetary Authority Professional Class B
Auditor
RSM Cayman
Fund administrator
NAV Consulting
ISIN
BMG316631008
* or USD $100,000 equivalent in BTC
Achievements

XCOF Diamond Hands has been founded on a framework of robust risk management and strong governance.

  • 2015
    XBTO was founded and became the first institutional market maker on several major exchanges.
  • 2016
    XBTO opens Paris office.
  • 2017
    XBTO expands into OTC trading, mining and venture capital.
  • 2018
    XBTO expands into Bermuda.
    XBTO joins Blockstream Liquid as a founding node.
  • 2019
    XBTO participates in the first block trade of US-regulated bitcoin futures.
    XBTO obtains Bermuda digital assets license.
  • 2020
    XBTO participates in first micro bitcoin futures trade on CME.
    XBTO expands into Miami.
    XBTO makes a strategic investment in the seed round for Stablehouse, alongside Dragonfly Capital, Liberty City Ventures and Coinbase Ventures.
  • 2021
    Stablehouse secures partnership with the world’s 5th largest fund administrator, Apex for custody & trading white-label platform.
    XBTO becomes the main corporate and jersey sponsor for Inter Miami's Major League soccer team co-owned by David Beckham and Jorge Mas.
  • 2022
    XBTO’s streaming markets volume grows by 2x.
    Proprietary quantitative strategies returned 12.3% in 2022 through the bear market.
  • 2023
    XBTO acquires institutional custody and trading platform Stablehouse.
    Daily volume hit $300,000,000 per day across company verticals.
    XBTO appoints former Goldman MD Javier Rodriguez as Chief Commercial Officer.
Disclaimer
This Presentation (the “Presentation”) is intended solely for the use of prospective investors in determining whether or not to pursue any opportunities with XBTO Crypto Opportunities Fund SAC Ltd., XBTO Global Ltd, XBTO International Ltd. Stablehouse Ltd or any of its group or related companies (together, the “Company”).

XBTO International Ltd and Stablehouse Ltd are licensed to conduct digital asset business by the Bermuda Monetary Authority.  The Presentation is of a proprietary nature  and the information contained herein may not be reproduced or redistributed in whole or in part, in any format, without the express written approval of the Company.

By reviewing this Presentation, the recipient agrees that it will, and it will cause its directors, officers, employees, consultants, agents and representatives to, use the Presentation and all of the information contained therein only to evaluate any opportunities with the Company and for no other purpose. This Presentation contains confidential material which is non-public information concerning the Company. This Presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or assets of the Company, nor should this Presentation be construed to indicate that the business of the Company remains unchanged since the date of this Presentation.

All information contained herein has been provided by the Company or other sources that the Company deems reliable. This Presentation includes certain statements, estimates, and projections provided by the Company with respect to its anticipated future performance. Such statements, estimates, and projections reflect various assumptions concerning anticipated results. No representations or warranties of any kind are intended or should be inferred with respect to any economic return from the Information.

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Any investment opportunity herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Any investment opportunity herein is available only for Non-US Accredited Investors. It is the responsibility of each person outside of the United States to comply with any applicable laws and regulations of their jurisdiction before accessing or using this investment.

Past performance, if any, does not guarantee or indicate future results or returns. The value of investments can fluctuate, and investors may lose all or more than their original investment. Investment outcomes are subject to various market, economic, and other risks that may cause future returns to differ from historical performance.

This material is provided for educational purposes only and does not constitute an offer to buy or sell securities, products, or services in any jurisdiction where such an offer is illegal or to any person for whom this offer is illegal.  None of the information discussed herein should be provided to any retail customers.

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