Interview with Biswa Das, BloomWater Capital - Baltic Honeybadger 2018 Conference

Here's a synthesized summary of the podcast interview with Biswa Das of BloomWater Capital, based on the provided partial transcripts:

1. Narrative Summary

Biswa Das, of BloomWater Capital, discussed his firm's unique approach to Bitcoin trading during an interview at the Baltic Honeybadger 2018 Conference. BloomWater Capital operates a regulated fund in the British Virgin Islands (BVI), focusing on systematic trading of BTC/USD futures across multiple exchanges. Unlike many funds that claim to be crypto-focused, BloomWater Capital actively trades, employing quantitative strategies to achieve consistent, moderate returns rather than chasing high-percentage gains. They do not invest in ICOs and have a rigorous regulatory and auditing process, including daily reporting and oversight from PWC. Das emphasized that Bitcoin has evolved into a trading asset class, and that systematic trading is increasingly necessary within a regulated and institutional market, outperforming traditional "buy and hold" strategies.

Looking towards the future, BloomWater Capital is exploring the possibility of expanding to become a retail fund, a complex process expected to take at least two years. Recognizing a gap in understanding within the crypto space, the firm is also committed to creating educational materials explaining Bitcoin basics, available on their website, Bloomwater.com. Das expressed a strong belief in the potential of the cryptocurrency ecosystem and a desire to engage with younger generations, even suggesting accepting Bitcoin as payment for school fees.

2. Main Topics Discussed

• BloomWater Capital's Approach: Regulated Bitcoin trading fund in the BVI, focusing on BTC/USD futures.
• Trading Strategy: Quantitative, systematic trading for consistent returns, not ICO investments.
• Regulation & Auditing: Rigorous process with BVI FSC, PWC auditing, and Malta-based administration.
• Market Landscape: Few funds actively trade, highlighting the need for systematic approaches.
• Trading vs. Holding: Bitcoin as a trading asset class, outperforming buy-and-hold strategies.
• Fund Structure: Index fund (buy and hold) and a trading fund (BTC/USD futures).
• Retail Fund Expansion: Potential transition to a retail fund, a lengthy process.
• Education & Community Engagement: Creating educational materials and engaging with younger generations.
• Ecosystem Belief: Strong belief in the growth potential of the cryptocurrency ecosystem.

3. Key Quotes

• "We believe not only in the technology behind Bitcoin, but we also believe that it is a new asset class, an uncorrelated asset class that we can trade."
• "Bitcoin, what I feel is, it has become a trading."
• "We are actually loving to take Bitcoin as a payment for the school fees."
• "It's always good at a Bitcoin conference to find some maximalist."

4. People Mentioned

• Biswa Das (BloomWater Capital)
• Personnel at PWC (auditor)
• Personnel at EY (auditor)

5. Bitcoin Prices Mentioned

• 2010 (early adoption)
• 2011 & 2012 (early trading)
• 2013 (significant price increase)
• The fund was up 34% since January, while most other funds were down 80%.