The world of cryptocurrency is dynamic, however many of the industry players in depository services have chosen to use the lending-deposit business model. However, the depositor is at risk of losing some of the investment if the borrower defaults on the payment, and 6% is the highest interest rate that can be earned with the lending-deposit model.
One of the products that Haru offers users and potential customers is Haru X. With this product, profits are made from the crypto market’s volatility when crypto investors allocate crypto assets. The Haru X product is a good option for investors who want to get optimal returns while mitigating the risks of investing in cryptocurrency’s volatile market. One of the attractive features of Haru X is the zero management fees, which is a break from the norm with other crypto asset management service providers. However, there are performance fees, which are charged when an investor has earned more than 10% in annual returns, and that event is a rarity.
Haru uses an asset management model that evolved from the lending-deposit model. Crypto investors that use Haru’s crypto depository service will have access to the platform’s market neutral strategy and spread trading system. Furthermore, the maximum interest offered by Haru is 16%.
Crypto Fund Industry
The crypto fund industry has been active for a while, and at the moment there are over 800 crypto funds in different parts of the world, and these crypto funds have their headquarters situated in over 80 countries. The second quarter of 2020 saw some crypto funds getting launched. The majority of the funds are venture capital and hedge funds, while a minute few are private equities. It may interest you to know that by the end of the second quarter of 2020, crypto funds had managed about $21.6 billion, with industry giants like Pantera Capital and Grayscale playing major roles in the growth index.
Haru X versus Others
Haru X offers investors a fee structure that is competitive within the industry; there is no management fee. There is a performance fee of 1.8% if the annual return is over 10%, and there are no minimum investment requirements. Comparing Haru with other players in the industry, Grayscale’s GBTC product comes with a management and performance fee of 2% and 30% respectively, with a minimum investment amount of $25,000, and only accredited investors are allowed to invest. Pantera’s Digital Asset Fund requires an accredited investor with a minimum investment amount of $100,000, and there is a management and performance fee of 2% and 20% respectively. Haru is accessible by public investors while other crypto funds require only accredited investors.
It is clear that Haru has positioned itself for greatness, by presenting everyone with the opportunity to enjoy the crypto depository services offered, and the competitive rates are attractive and strategic enough to present a win-win situation for the investor and the company.
Source: The Capital.