In its weekly update published on Facebook (NASDAQ:FB), Rivemont Crypto Fund—the singular actively-managed cryptocurrency fund in Canada—revealed that exactly 90.9% of its assets are just fiat currency. The other 9.1% of the fund is entirely in Bitcoin (BTC).
Looking into the post, we can see that this impressive proportion of fiat is mostly due to a decision to sell the majority of its cryptocurrency stake after a correction that took place on Tuesday last week.
“After rebounding on this moving average twice on July 2nd and 3rd, we finally crossed it on 4th. We therefore deployed a little more than half of the fund’s capital in Bitcoin and Ethereum. If last weekend’s action proved encouraging, a sudden correction on Tuesday took us back to the wrong side of the 30-day average. We have therefore taken the path of discipline and resold our positions, waiting for a future profitable entry point for our investors,” the fund said.
Because of this selling action, Rivemont managed to miss the upswing in the cryptocurrency market that took place over the last few days, correcting Bitcoin back to a price of $7,388, up from the low of around $6,100 that the coin had last Friday.
Given the downward trend that the cryptocurrency had for such a period, it was natural to believe that the spiral would continue. Currently, there’s no word on whether Rivemont reversed its move and bought cryptocurrency before the market started gaining traction again.
“I would say that the cryptocurrency market right now is not really in a bull market so people are waiting to see if it’s going down further,” said president Martin Lalonde.
The company apparently bases its analyses on 30-day averages, so we can’t expect them to make a strong buy anytime soon.
Rivemont Crypto Fund was founded on December 14 last year, in a moment when Bitcoin was about to hit its peak of $20,000. Since then, the coin’s value experienced a sharp drop and stabilized in the region between $5,000 and $8,000.
Despite these trends, Lalonde continues to believe that cryptocurrencies will experience stronger adoption.
“Those who think that interest in cryptocurrencies is running out of steam are not watching closely. The opposite is happening,” he said.
Since the initial boom of Bitcoin, we’ve seen a significant amount of interest from organizations with plenty of institutional capital to swing around.
In fact, even after the drop, cryptocurrency-focused hedge funds have been popping up in droves. Perhaps a higher level of adoption and an increased trade volume for Bitcoin may be just the thing needed to clamp down on its notorious volatility.
This article appeared first on Cryptovest