Frequenly Asked Questions

A crypto fund in the Netherlands is an investment fund that focuses on investments in cryptocurrencies and related digital assets. The fund is managed by professional fund managers who make strategic choices to generate returns from the volatile and fast-growing crypto market. This type of fund allows investors to benefit indirectly from the growth and opportunities in the crypto sector without having to actively trade in this market themselves.

Features of a crypto fund in the Netherlands:

• Managed by experts: Fund managers use their knowledge and experience to manage positions in various cryptocurrencies.
• Regulation: In the Netherlands, crypto funds are supervised by the Netherlands Authority for the Financial Markets (AFM), usually under the AIFMD-light regime. This offers investors greater certainty of regulatory compliance.
• Risk diversification: A crypto fund invests in multiple assets, which helps spread risk and manage volatility.
• Accessibility: Investors can participate in the fund without having to develop their own technical knowledge or active trading strategies.

Raising capital: Investors put money into the fund.
Portfolio building: Fund managers invest this capital in various cryptocurrencies, such as Bitcoin, Ethereum, or smaller, promising altcoins.
Active management: Managers constantly monitor the market, adjust positions and react to trends and developments.
Return sharing: Investors benefit from the fund’s returns, minus management fees and performance fee

• Professional management.
• Access to a wide variety of cryptocurrencies.
• Less technical complexity for individual investors.

• High volatility of the crypto market.
• No guarantee of profit.
• Dependent on the expertise of the fund manager.

A crypto fund in the Netherlands offers a regulated and structured framework to invest in the emerging world of digital assets, with the convenience of professional management and risk diversification.

Trust is established through the professional structure of the fund’s set-up. A Foundation has been established for the safekeeping of funds. In addition, Mahler Capital provides fund documentation required by Dutch law so that investors can make an informed decision. Mahler Capital also works with an independent fund manager, AssetCare, to calculate Net Asset Value (fund assets) on a monthly basis. And most importantly, Mahler Capital is registered with the AFM. This means we are automatically subject to the Wwft and Sanctions Act once we are registered with the AFM. The AFM supervises this.

Technical analysis (TA) is used to predict price movements of cryptocurrencies by analyzing historical price data and trading volumes. It is an essential method for Mahler Capital because of its high volatility and 24/7 trading.
TA uses charts and tools to identify trends and patterns, such as:

• Trend analysis: Recognizing rising, falling or sideways trends.
• Support and resistance levels: Determining price levels where buyers or sellers can influence the market.
  Indicators: Tools such as RSI (Relative Strength Index), Bollinger Bands, and Moving Average help signal overbought or oversold conditions and trendy changes.
• Volume Analysis: Trading volume provides insight into the strength of a trend.

TA is applied to strategically determine when to buy, sell or hold positions. This is often done in conjunction with fundamental analysis for a more balanced approach. It helps Mahler Capital make more informed decisions in the dynamic crypto market.

Typically, there are two types of crypto funds:

1. Funds that invest in blockchain projects/companies;
2. Funds that try to beat the stock market.

Mahler Capital falls under the latter category. There are two varieties in this as well. For example, there are funds that work entirely based on algorithms and there are funds where the trades are executed by people supported by technology
The funds that work with algorithms make trades 24/7, 365 days a year. This includes very small trades. This goes on non-stop. Mahler Capital works with people supported by technology. We take very deliberate positions when the market is favorable (technical analysis). It can happen that positions are not taken in a few weeks because the market is not favorable. We therefore recommend always trying Mahler Capital for min 12 months.

We have kept costs as manageable as possible for the investor:

• 2.5% fund management fee;
• 35% performance fee (high-water mark);
• 0.25% exit fee.

Please note, there are no hidden fees that come on top. We do not pass on any transaction fees from the bank and/or exchanges to the investor. We eminently do not do this. We want to keep it as simple and straightforward as possible.

You have a monthly option to opt out. Indicate this to us in advance and we take care of it – after calculating the NAV – the amount will be transferred within a few working days.

• Active management: Managers constantly monitor the market, adjust positions and react to trends and developments.
• Diversification: We traded on several exchanges to avoid an FTX fiasco;
• Broad Portfolio: We have a strategic spread in our digital assets;
• Reliability: As an AFM-registered fund in the Netherlands, we strictly adhere to all laws and regulations surrounding investing;
• We implement stop losses to protect your investments.
• Protocols: With our ‘4-eye policy’, at least 2 experts always follow the market closely.

The professional fund setup, which includes an independent administrator, plays a crucial role in ensuring and fostering trust/establishes trust. There is a separate foundation for the custody of funds.

Next to that Mahler Capital provide fund documentation that’s obliged by Dutch law so investors can make a well-informed decision. Also, Mahler Capital works with an independent fund administrator AssetCare to calculate its’ Net Asset Value (NAV).

Furthermore, it is important to note that Mahler Capital is registered with the AFM, which subjects Mahler Capital to the Wwft (Anti-Money Laundering and Counter-Terrorist Financing Act) and the Sanctions Act upon registration. The AFM serves as the overseeing authority in this regard.

Mahler’s vision on cryptocurrency is that it offers various potential value propositions and benefits. Here are some key aspects:

• Decentralization
• Security and safety
• Fast and cost-effective transactions
• Financial inclusion
• Innovation and new possibilities

It is important to note that the value and benefits of cryptocurrency depend on various factors, including the specific project, adoption rate, and regulations. Cryptocurrency investments also come with risks, such as volatility and regulatory challenges.

Mahler Capital believes in the long-term price appreciation of Bitcoin and Ethereum, which is why BTC and ETH always form the largest portion of our portfolio. With a portion of the profits, we invest in a select number of altcoins.

At Mahler Capital, we adhere to the High Water Mark principle in our investment management approach. This principle serves to ensure fairness in fee structures for our investors. The High Water Mark represents the peak value that an investment account has reached. When managing investments, we only charge performance fees on new profits generated after surpassing the previous peak. This methodology aligns our interests with those of our investors. Investors are only charged fees when their investment surpasses previous highs, while Mahler Capital is incentivized to consistently achieve new highs to earn its fees. Ultimately, this approach ensures that investors are not charged for the same performance multiple times and that Mahler Capital is rewarded for generating genuine value for its investors.

If a fund is registered with the Authority for the Financial Markets (AFM), it means that the fund complies with the legal requirements and regulations set forth by the AFM. The AFM is the financial regulatory authority in the Netherlands responsible for overseeing the conduct of financial institutions and ensuring a fair and transparent financial market.

The registration process with the AFM entails the fund meeting specific standards and criteria. These standards pertain to aspects such as transparency, provision of information to investors, risk management, and compliance with relevant laws and regulations. By being registered with the AFM, the fund demonstrates its commitment to these standards and subjects itself to the authority’s supervision.

For investors, the fact that a fund is registered with the AFM provides a certain level of confidence and credibility. It implies that the fund adheres to the rules and that the information provided to investors is reliable and accurate. However, it remains important for investors to conduct their own research and carefully evaluate the characteristics and performance of a fund before making investments.

A provider of investment objects is exempt from the licensing requirement if they meet one or more of the conditions below:

• the provider offers to fewer than 100 consumers;
• the investment object being offered is part of a series, consisting of fewer than 20 investment objects;
• the investment per investment object is €100,000 or more (in Mahler Capital’s case).

If the provider is exempt from the licensing requirement, they are obliged to state in all their advertising and documents that they are not subject to licensing and are not under the supervision of the AFM. You will then encounter the following statement: “This investment falls outside AFM supervision. No license and no prospectus required for this activity.”