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The Q.ai Team
August 1, 2022

About the Bitcoin Breakout Kit

About the Bitcoin Breakout Kit

In recent months, both Bitcoin and tech stocks have moved downward in tandem.

In May, Bitcoin took a deep dive below $33,000, hitting its lowest level since July 2021. Meanwhile, many tech giants—and, particularly, darlings of the pandemic—are struggling to stay apace with their pandemic performances. And others are simply navigating a new normal amid the “great resignation.” 

While all of that may seem scary, rest assured that you actually stand to capture upside. And that’s thanks to Q.ai’s latest Limited Edition Kit: the Bitcoin Breakout Kit.

Hop on the Bitcoin bandwagon with the Bitcoin Breakout Kit

So far this year, Bitcoin has declined substantially. However, many of these declines can be explained by sell-offs in the tech sector. Therefore, when we remove those risk factors tied to the tech sector, Bitcoin investors could be in better shape.

So long as Bitcoin outperforms tech stocks going forward, it creates value no matter which way the overall market moves. That’s because Q.ai’s Bitcoin Breakout Kit creates a hedge against tech-sector risks.

In short: We’ve put together paired trade that aims to isolate the risk tied to the tech sector so that you don’t have to take those on when you invest in Bitcoin. So even if Bitcoin is dragged down by a major tech sell-off, this Kit should offset the negative impact.

Invest in Bitcoin ETFs and short against the Nasdaq 100

We’ve said it before, and we’ll say it again: Investing long and shorting gets complicated, especially with paired trades. And that’s why we often use inverse ETFs. These offer the same benefits of holding short positions without all the complex mechanics. 

The Bitcoin Breakout Kit takes a long-short approach to investing your funds by purchasing a Bitcoin fund(GBTC) and an inverse ETF (PSQ) to create a short against the Nasdaq 100.

Because you hold one asset long and a related asset short, you offset many risk factors tied to tech and benefit from the relative difference in Bitcoin and tech stocks, at large.

Plus, this Kit will rebalance weekly to ensure that the strategy is working optimally to isolate the factor we want to capture: the outperformance of Bitcoin in relation to the tech sector. Weekly rebalancing helps us maintain a “neutral” position in regards to tech market risk.

Reduce tech sector risk with the Bitcoin Breakout Kit

The Bitcoin Breakout Kit is designed to benefit from a future appreciation in Bitcoin—and it does so all while removing some of that drag on digital assets from recent tech stock sell-offs. 

So, for investors who still see some upside potential for Bitcoin—but who want to reduce the risk related to the overall tech market—this Kit creates the hedge you never knew you needed.

However, it’s worth noting that, just because this Kit reduces exposure to the risky tech sector doesn’t mean that it’s not risky in and of itself. The Bitcoin Breakout Kit is one of Q.ai’s higher-risk Kits. 

Bottom line

Through this Kit, you can benefit from Q.ai’s expectations that Bitcoin will indeed outperform the tech sector as a whole—without taking on other risks associated with tech investing, whichever way the market trends.

Additionally, because it’s another one of our specialized paired trades, we’re offering it as a smaller position that you, like anyone, can add to your portfolio. The low investment minimum of the Kit is only $50, which means it’s a more affordable way to diversify your portfolio.

While investment banks have productized these kinds of hedged, paired trades for high-net-worth clients, Q.ai makes them accessible to everyone.

Add the Bitcoin Breakout Kit to your investment portfolio in Q.ai.

Q.ai is the trade name of Quantalytics Holdings, LLC. Q.ai, LLC is a wholly-owned subsidiary of Quantalytics Holdings, LLC ("Quantalytics"). Quantalytics offers automated financial advice tools through Quantalytics Investment Advisors, LLC ("QAI"), an SEC-registered investment advisor. QIA’s investment advisory services are ONLY available only to residents of the United States. Disclosures concerning QIA’s investment advisory services are available on its Form ADV filed with the SEC. The content in this newsletter is for informational purposes only and does not constitute a comprehensive description of Q.ai's investment advisory services.

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