About Arbtrust

What is an alternative asset:

Alternative investments are financial assets that are not considered conventional investments. While conventional investments include stocks, bonds and cash; some of the alternative investment options are hedge funds, commodities, private equity, debentures, venture capital, art, wine, and derivatives contracts. Oh, and did you know real estate can also be considered an alternative investment? They also typically have a low correlation with the so-called standard investments. This means the alternative investments have their own trend of performance and they do not move always in the same direction stock and bond markets go. This feature makes alternative investments a suitable tool for portfolio diversification. Investments in hard assets, such as gold, oil, and real property, also provide an effective hedge against inflation, which hurts the purchasing power of paper money. In summary, alternative investments provide portfolio diversification, hedge against the inflation, higher return rates and can also work as tool to reduce risk without hurting the returns.

Digital USD

The first and most popular digital form of US Dollar is the Tether (USDT) a stablecoin that sustains the trades and negotiations in the digital asset industry. The USDT is pegged to the U.S. dollar, and it is unaffected by the market volatility that can dramatically impact the valuation of cryptocurrencies and digital assets, such as Bitcoin. The USD Tether aims to provide a stable digital asset that maintains a stable valuation. This is what makes USDT a stablecoin: its value is pegged to the price of the U.S. dollar. Therefore, Tether should always keep the same value as its peg; it provides steady, reliable liquidity to get in and out of other digital assets and the cryptocurrency world, and it allows trades without facing unpredictable losses (or gains) from volatile price changes. Tether’s 24-hour trading volume ranges from $60 to $89 billion and is the most liquid digital coin. The key point about Tether is that it is tied to a real-life commodity, the USD.

The Dollar Tether is one of the cornerstones of the digital asset economy, with daily trading volumes that can be double or triple that of . The Tether is a stable coin but not just that, it is the dominant issuer of stable coins. It is pegged to a stable asset, in this case, the U.S dollar. Differently than traditional cryptocurrencies soursuch as Bitcoin and Ethereum, whose monetary value can fluctuate widely, the Tether is designed to maintain a price of $1 and is backed by large reserves of funds. Investors use stablecoins as a source of collateral in a volatile world, and coins have become a preferred medium of exchange for payments, trading, lending and other activities based on blockchain technology. According to an article published by the New York Times, quoting the finance expert Hillary Allen “Tether is really the lifeblood of the crypto ecosystem”.

The USD Coin or USDC is another form of digital US dollar with its value tied to the U.S. dollar. USDC is another stablecoin, and as one USDC should always be equal in value to one dollar. USDC is currently the second largest stablecoin, with a market capitalization of $73 billion, behind the USDT – the largest stablecoin. Like USDT, USDC is backed by real assets, and referred to as a fiat-collateralized stablecoin.

To maintain its stable value equal to the US Dollar, the USDC is backed by cash and short-term U.S. government bonds as collateral. For every USDC token in circulation, $1 is held in collateral.

Types of Arbitrage:

1. Pure Arbitrage

Pure arbitrage refers to the investment strategy above, in which an investor simultaneously buys and sells a security in different markets to take advantage of a price difference. As such, the terms “arbitrage” and “pure arbitrage” are often used interchangeably. Many investments can be bought and sold in several markets. For example, a large multinational company may list its stock on multiple exchanges, such as the New York Stock Exchange (NYSE) and London Stock Exchange. Whenever an asset is traded in multiple markets, it’s possible prices will temporarily fall out of sync. It’s when this price difference exists that pure arbitrage becomes possible. Pure arbitrage is also possible in instances where foreign exchange rates lead to pricing discrepancies, however small.

Ultimately, pure arbitrage is a strategy in which an investor takes advantage of inefficiencies within the market.

2. Merger Arbitrage

Merger arbitrage is a type of arbitrage related to merging entities, such as two publicly traded businesses. Generally speaking, a merger consists of two parties: the acquiring company and its target. If the target company is a publicly traded entity, then the acquiring company must purchase the outstanding share of said company. In most cases, this is at a premium to what the stock is trading for at the time of the announcement, leading to a profit for shareholders. As the deal becomes public, traders looking to profit from the deal purchase the target company’s stock—driving it closer to the announced deal price.

The target company’s price rarely matches the deal price; however, it often trades at a slight discount. This is due to the risk that the deal may fall through or fail. Deals can fail for several reasons, including changing market conditions or a refusal of the deal by regulatory bodies, such as the Federal Trade Commission (FTC) or Department of Justice (DOJ).

In its most basic form, merger arbitrage involves an investor purchasing shares of the target company at its discounted price, then profiting once the deal goes through. Yet, there are other forms of merger arbitrage. An investor who believes a deal may fall through or fail, for example, might choose to short shares of the target company’s stock.

3. Convertible Arbitrage

Convertible arbitrage is a form of arbitrage related to convertible bonds, also called convertible notes or convertible debt.

A convertible bond is, at its heart, just like any other bond: It’s a form of corporate debt that yields interest payments to the bondholder. The primary difference between a convertible bond and a traditional bond is that, with a convertible bond, the bondholder has the option to convert it into shares of the underlying company later, often at a discounted rate. Companies issue convertible bonds because doing so allows them to offer lower interest payments.

Investors who engage in convertible arbitrage seek to take advantage of the difference between the bond’s conversion price and the current price of the underlying company’s shares. This is typically achieved by taking simultaneous positions—long and short—in the convertible note and underlying shares of the company. Which positions the investor takes and the ratio of buys and sells depends on whether the investor believes the bond to be priced. In cases where the bond is cheap, they usually take a short position on the stock and a long position on the bond. On the other hand, if the investor believes the bond to be overpriced or rich, they might take a long position on the stock and a short position on the bond.

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Arbtrust LLC is a Company based in Florida. Any prospective investors that wish to subscribe units of the Abrtrust LLC operations should contact us through the contact form. This website is not an offer to buy or sell, nor is it a solicitation of an offer to buy or sell, the Units or any other security or to participate in any advisory services or trading strategy. Any offering or solicitation will be made only to certain qualified investors who are “accredited investors” as defined under Regulation D of the Securities Act, and any investments by U.S. persons will only be permitted to potential investors who demonstrate that status. Investors in the Shares must have the financial ability, sophistication, experience, and willingness to bear the risks of such investment.

Arbtrust Venture LLC (the “fund”) operates pursuant to SEC rule 506(b) of regulation D. The membership interests of the fund have not been registered under the securities act of 1933 (the “securities act”), or the securities laws of any state. Abrtrust performs arbitrage in the negotiation of digital assets, the simultaneous buy and sell of a specific asset taking advantage of the fluctuation of the price of the same asset; and also invests in international private companies.

Historical returns, economic, market or other performance it is not an indication of future results. Potential investors must have the financial ability, sophistication, experience, and willingness to bear the risks of an investment.

Any potential investments made in the company involve risk. Potential investors should carefully consider the long term nature of an investment in the Units prior to making an investment decision. Units of the company are not insured by the FDIC.

TO REGISTER FOR ACCESS TO INVESTMENT MATERIALS.THIS CONFIDENTIAL DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR ADVISE, IS FOR INFORMATIONAL PURPOSES ONLY WITH NO WARRANTY MADE EXPRESS OR IMPLIED TO ITS ACCURACY. ACCREDITED INVESTORS ONLY.