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How it works ?
1. Instead of buying Bitcoin today, you buy the Bitcoin Market Timer
2. Choose your Bitcoin Target Purchase price: either 25% or 50% discount compared with today's price
3. If Bitcoin is observed below your target price in 12 Months, you get to buy it at this discount
4. Whether your target price is reached or not you receive 30% or 15% interest p.a
Why ?
Reduce your downside risk:
A) You invest 1,000 USD into bitcoin today and Bitcoin drops 60% after 12 Months
=> You are down 60% your latent loss is 600 USD, plain simple
B) You invest into the Bitcoin Market Timer -50% instead and Bitcoin drops -60% after 12 Months
=> You get to buy Bitcoin at 50% discount compared with today's price. Since 40% (100%-60%) from 50% is a 20% drop. You latent loss is only 200 USD.
In addition, Since the Bitcoin Market Timer -50% is paying a quarterly interest of 15% per annum. You receive 37.5 USD at the end of the quarter (150 USD per year)
=>Your latent loss is 200 USD - 150 USD = 50 USD. Your are down 5% Versus of 60% in a direct investment
Optimize your entry price:
Remember:
A) => You are down 60% on your investment
B) => You are only down 5% AND you bought bitcoin at 50% discount compared with today's price
Receive quarterly income:
While strategically positioning your portfolio and be equipped for the next buy window. You receive quarterly interest payment on your allocated amount.
Details
Plain simple. At the end of each quarter :
If Bitcoin price is observed above its initial level
Product terminates early and your cash is returned to you: You receive back 100% of your initial investment + payment of your quarterly interest.
If Bitcoin price is observed below its Initial level
=> The product continues for another quarter + you receive payment of your quarterly interest
At Maturity:
If Bitcoin price is observed above your Target Purchase Price
You receive back 100% of your initial investment + payment of your quarterly interest
If Bitcoin price is observed below your Target Purchase Price
Bitcoin performance from your Target Purchase Price is applied to your initial investment
=>Formula is as follow : Initial investment * (Final Bitcoin Level / Target Purchase Price)
+ You also receive payment of your quarterly interest
Product
EMTN
Issuer
Maturity: 12 months
Currency: USD
Underlying: IShares IBIT
Autocall: 100% Observation quarterly
Conversion Target: -25% / -50%
Coupon: 30% p.a / 15%p.a
Example
USD 1,000 Investment / BTC Market Timer -25%
Bitcoin initial level USD 68,500
Target Purchase price = Initial Level -25% = USD 51,375
Scenario 1
End of Q1:
- Bitcoin Level is observed at 60,000 USD
Bitcoin Level is below Initial Level => The product continues for another quarter
You receive your Quarterly Interest Payment of (1,000 USD * 30% p.a) / 4 = 75 USD
End of Q2:
- Bitcoin Level is observed at 75,000 USD
Bitcoin Level is ABOVE Initial Level => The Product terminates early.
You receive 100% of your Initial Investment + Payment of your Quarterly Interest Payment of (1,000 USD * 30% p.a) / 4 = 75 USD
=> TOTAL INTESTMENT RETURN = 150 USD Interest Payment = 15% in 6 Months = 30% annualized
Scenario 2
End of Q1:
- Bitcoin Level is observed at 60,000 USD
Bitcoin Level is below Initial Level => The product continues for another quarter
You receive your Quarterly Interest Payment of (1,000 USD * 30% p.a) / 4 = 75 USD
End of Q2:
- Bitcoin Level is observed at 55,000 USD
Bitcoin Level is below Initial Level => The product continues for another quarter
You receive your Quarterly Interest Payment of (1,000 USD * 30% p.a) / 4 = 75 USD
End of Q3:
- Bitcoin Level is observed at 55,000 USD
Bitcoin Level is below Initial Level => The product continues for another quarter
You receive your Quarterly Interest Payment of (1,000 USD * 30% p.a) / 4 = 75 USD
End of Q4 (Final Observation):
- Bitcoin Level is observed at : 70,000 USD
Bitcoin Level is ABOVE Target Purchase Price
Capital Redemption = 100% of Initial Investment
You receive your Quarterly Interest Payment of (1,000 USD * 30% p.a) / 4 = 75 USD
=> TOTAL INTESTMENT RETURN = 300 USD of Interest Payment = 30% in one year
Scenario 2 BIS
Scenario 2 BIS: End of Q4 (Final Observation):
- Bitcoin Level is observed at 40,000 USD
Bitcoin Level is BELOW Target Purchase Price
Capital Redemption = Initial Investment * (Bitcoin Final Level / Bitcoin Target Purchase Price)
Capital Redemption = 1,000 USD * (40,000 USD / 51,375 USD ) = 778 USD
You receive your final Quarterly Interest Payment of (1,000 USD * 30% p.a) / 4 = 75 USD
=> TOTAL INTESTMENT RETURN = -221 USD due to Bitcoin Performance + 300 USD of Interest Payment = 78 USD or 7.8%
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