One other request for clarification. Contract says:
"A portion of the fund will be held in Bitcoins. Not more than 10% of the entire
fund?s value may be held in Bitcoins. Bitcoins will be used to balance the fund
and to offer share buybacks."
What's the fund's policy on liquidity/buying back shares? Sounds like you have a policy (which is a big step up from many 'funds') - but at what % of current fund value do you do it? Is it done via bids place by you, by filling asks placed by investors or on request?
Linked to this, contract says:
"Management Fees
Management will be compensated in with 5 shares of the fund being issued to the
manager?s personal account for every 100 shares sold. Shares issued as
compensation will be non voting shares (shares will abstain from all motions)."
If you buy back shares are a proportionate amount of management shares returned to the fund? Sure you can see the problem if not - agressive rebuying and reselling could end up with management shares being a large chunk of equity.
Also on management shares, if the fund closes does management get to take a percentage of the proceeds? If so, isn't that a little bit dubious given that management can close at any time for any reason - and could get 5% of fund value even if they'd never made a profit (or even got around to ever buying any investments).
On the other hand, if management can't vote with the shares and does NOT get assets on fund closing then why have management shares at all? Why not just pay 5% of received dividends as a management fee - which manager can then use to buy shares that DO vote and own assets if he so chooses?
This giving shares that aren't actually shares thing seems to have got widespread without any real justification or purpose - and just opens up avenues of abuse and problems that don't need to be made possible.
Topic: [BTC-TC and BF] MININGCO.ETF - Closed - page 18. (Read 48277 times)
Are there 5 or more such companies on BTC.CO?
From BTC.CO Assets Issuers Terms of Service:
"Long-term investment securities are not to invest more than 20% of their portfolio into any other single security on BTC-TC. "
From BTC.CO Assets Issuers Terms of Service:
"Long-term investment securities are not to invest more than 20% of their portfolio into any other single security on BTC-TC. "
I'm trying to find a good share price.
BTC1 used to be the going rate, but that was awhile ago. I would like to stick with 1 some how. BTC0.1 seems to little, but may be more practical for smaller investors.
BTC.25 sounds about right to start, but I would still rather have tenths.
I also thought about including non BTCT.CO mining companies, but I don't want to evaluate these companies. With BTCT.CO assets, the moderators usually get it right, but other assets don't have this moderation. I want to stick with a formula for including assets that anyone can follow, not using my own arbitrary judgement.
Any thoughts? I would love to discuss.
BTC1 used to be the going rate, but that was awhile ago. I would like to stick with 1 some how. BTC0.1 seems to little, but may be more practical for smaller investors.
BTC.25 sounds about right to start, but I would still rather have tenths.
I also thought about including non BTCT.CO mining companies, but I don't want to evaluate these companies. With BTCT.CO assets, the moderators usually get it right, but other assets don't have this moderation. I want to stick with a formula for including assets that anyone can follow, not using my own arbitrary judgement.
Any thoughts? I would love to discuss.
Asset spreadsheet: https://docs.google.com/spreadsheet/ccc?key=0AqLxDN0JzEUNdHdhandXeDQwTU13N2ZmbWxMMHNzeGc
Public Portfolio: https://btct.co/portfolio/gr83
Nasty Fans "seats" list. Username: MININGCO https://nastyfans.org/list.csv
Bitcoin wallet address: 1Mining6y9NFU1cWxBgExYykwgCCoqoW8X
Public Portfolio: https://btct.co/portfolio/gr83
Nasty Fans "seats" list. Username: MININGCO https://nastyfans.org/list.csv
Bitcoin wallet address: 1Mining6y9NFU1cWxBgExYykwgCCoqoW8X
https://btct.co/security/MININGCO.ETF
https://bitfunder.com/asset/MININGCO
Closed
MININGCO.ETF
Summary:
The purpose of this MiningCo.ETF (the fund) is to allow investors to instantly diversify among higher quality mining assets.
MININGCO.ETF is an Exchange Traded Fund that holds assets that are invested in mining Bitcoins where mining equipment is owned by the shareholders. Only assets with a proven track record of steady dividends and upholding their shareholder contracts will be considered. There is equal weight to all assets in the fund, no trading will occur outside of rebalancing the fund.
The Fund's portfolio will be public (where available) to show proof of ownership of underlying assets.
Transparency
The fund seeks maximum transparency by fully disclosing all assets held in the fund at any time. All dividends accrued and paid will be disclosed. All management fees will be disclosed.
Assets to be included
Only mining assets where equipment is owned by the shareholders will be included in the fund. Only assets with a proven track record of steady dividends and upholding their contracts will be considered. Assets on Bitcoin Trading Corp. with a total score of 6 or higher will be included in the fund.
When a new asset meets these criteria, it will be included in the fund, following balancing rules (see Balancing). When an asset no longer meet these criteria, it will be removed from the fund, following balancing rules.
A motion to add or remove assets from the fund can be requested by the shareholders.
Bitcoin Reserve
A portion of the fund will be held in Bitcoins. Not more than 20% of the entire fund’s value may be held in Bitcoins. The Bitcoin Reserve will be used to balance the fund and to offer share buybacks.
Balancing
All assets in the fund, except the Bitcoin Reserve, will be weighted equally based on Bitcoin value. Assets in the fund will be kept in equal weight less the Bitcoin Reserve by periodically rebalancing the fund. This occurs through the manager utilizing the Bitcoin Reserve, when necessary, to trade underlying assets. This can not be maintained all the times with 100% accuracy. Rebalancing will occur not less than once per month, and not more than once per week. Acceptable tolerance for balancing is a 10% margin of error of entire fund’s value for each asset. Balancing to a higher degree will incur unnecessary exchange fees and might depress low volume underlying assets. Exchange fees will be kept to a minimum by trying to perform direct transfers between asset issuers and the fund.
Dividends
Dividends will be paid only from dividends accrued from the underlying assets. Dividends will be paid weekly at most, no less than bi-weekly.
Share buybacks
Share buybacks will be offered on a very limited basis at 90% of the current Net Asset Value per share buy placing bids on the market.
Net Asset Value
The Net Asset Value (NAV) is the value of all assets in the fund plus the Bitcoin reserve.
The Net Asset Value per share is the value divided by number of shares outstanding. This is also known as NAV/U
Management Fees
Management will be compensated in with 6.9% of all dividends paid. 6.9% will be paid to management from all accrued dividends before being paid to shareholders.
Underlying Asset Motions
Underlying assets held by the fund may periodically raise motions to vote. This fund will vote on motions on underlying assets favoring the best interest of the fund. Shareholder may request a motion for proxy voting the fund’s shares of an underlying asset.
Risk to shareholders
Although research has been put into each underlying asset, Mining assets in the past have been unpredictable. The fund’s value relies on the the value of the underlying assets. If the underlying asset value decreases, the entire fund’s value will also decrease. Additional risks to Mining assets include the price of Bitcoin, the price of mining equipment, the difficulty mining Bitcoins the Bitcoin reward per block, mining equipment upgrades, as well as many other risks. This fund does not hedge against any of these risks. Each shareholder must understand these risks before investing.
Fund Closure
Management reserves the right to close this fund for any reason giving 30 days notice. All assets in the fund including unpaid dividends will be liquidated on the respective markets and paid to shareholders.
https://bitfunder.com/asset/MININGCO
Closed
MININGCO.ETF
Summary:
The purpose of this MiningCo.ETF (the fund) is to allow investors to instantly diversify among higher quality mining assets.
MININGCO.ETF is an Exchange Traded Fund that holds assets that are invested in mining Bitcoins where mining equipment is owned by the shareholders. Only assets with a proven track record of steady dividends and upholding their shareholder contracts will be considered. There is equal weight to all assets in the fund, no trading will occur outside of rebalancing the fund.
The Fund's portfolio will be public (where available) to show proof of ownership of underlying assets.
Transparency
The fund seeks maximum transparency by fully disclosing all assets held in the fund at any time. All dividends accrued and paid will be disclosed. All management fees will be disclosed.
Assets to be included
Only mining assets where equipment is owned by the shareholders will be included in the fund. Only assets with a proven track record of steady dividends and upholding their contracts will be considered. Assets on Bitcoin Trading Corp. with a total score of 6 or higher will be included in the fund.
When a new asset meets these criteria, it will be included in the fund, following balancing rules (see Balancing). When an asset no longer meet these criteria, it will be removed from the fund, following balancing rules.
A motion to add or remove assets from the fund can be requested by the shareholders.
Bitcoin Reserve
A portion of the fund will be held in Bitcoins. Not more than 20% of the entire fund’s value may be held in Bitcoins. The Bitcoin Reserve will be used to balance the fund and to offer share buybacks.
Balancing
All assets in the fund, except the Bitcoin Reserve, will be weighted equally based on Bitcoin value. Assets in the fund will be kept in equal weight less the Bitcoin Reserve by periodically rebalancing the fund. This occurs through the manager utilizing the Bitcoin Reserve, when necessary, to trade underlying assets. This can not be maintained all the times with 100% accuracy. Rebalancing will occur not less than once per month, and not more than once per week. Acceptable tolerance for balancing is a 10% margin of error of entire fund’s value for each asset. Balancing to a higher degree will incur unnecessary exchange fees and might depress low volume underlying assets. Exchange fees will be kept to a minimum by trying to perform direct transfers between asset issuers and the fund.
Dividends
Dividends will be paid only from dividends accrued from the underlying assets. Dividends will be paid weekly at most, no less than bi-weekly.
Share buybacks
Share buybacks will be offered on a very limited basis at 90% of the current Net Asset Value per share buy placing bids on the market.
Net Asset Value
The Net Asset Value (NAV) is the value of all assets in the fund plus the Bitcoin reserve.
The Net Asset Value per share is the value divided by number of shares outstanding. This is also known as NAV/U
Management Fees
Management will be compensated in with 6.9% of all dividends paid. 6.9% will be paid to management from all accrued dividends before being paid to shareholders.
Underlying Asset Motions
Underlying assets held by the fund may periodically raise motions to vote. This fund will vote on motions on underlying assets favoring the best interest of the fund. Shareholder may request a motion for proxy voting the fund’s shares of an underlying asset.
Risk to shareholders
Although research has been put into each underlying asset, Mining assets in the past have been unpredictable. The fund’s value relies on the the value of the underlying assets. If the underlying asset value decreases, the entire fund’s value will also decrease. Additional risks to Mining assets include the price of Bitcoin, the price of mining equipment, the difficulty mining Bitcoins the Bitcoin reward per block, mining equipment upgrades, as well as many other risks. This fund does not hedge against any of these risks. Each shareholder must understand these risks before investing.
Fund Closure
Management reserves the right to close this fund for any reason giving 30 days notice. All assets in the fund including unpaid dividends will be liquidated on the respective markets and paid to shareholders.
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