Hedgeable Offers 1 BTC To Each Investor - Essay Example

Hedgeable’s new investor promotion promises that interested investors will get 1 free bitcoin.

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As an investor promotion, Hedgeable has announced a lucrative offer to give away 1 free bitcoin to any investor who registers for the company’s Plus Program.

The company stresses that this promotion is available to everyone in America.

Hedgeable is VC-backed asset management start-up founded back in 2009. The firm aims to democratize access to new investing platforms by allowing exposure to new and lucrative asset classes such as bitcoin to everyday investors.

Michael Kane, the CEO and co-founder of Hedgeable, framed the announcement as one which best expresses the company’s core vision that “every American should have access to potentially high-reward asset classes such as bitcoin.”

He expressed that Hedgeable wants everyone in the country to own digital currency bitcoin like they hold dollars. For this purpose, the team is talking to people who do not own the crypto currency but want to own some.

He explained that millions of Americans read about bitcoin regularly and even think it is very innovative but do not buy it as there is no one to help them do through the process.

Kane specified that high net-worth individuals have access to the digital currency through hedge funds and family offices.

The company is trying to bring exposure to this asset class down market, to people who might actually consider using it alongside traditional investment vehicles like IRA or 401(k).

The recent investor promotion is a part of Hedgeable’s multi-stage rollout of bitcoin services which has integrated the platform with Coinbase.

The Plus Program entails a minimum investment of $25,000 and associated fees, which can be paid using bitcoin. At present, bitcoin investments are not available with the $5,000 basic investment program.

Kane stressed that even though the account requires a sizable upfront investment, the target market consists of the average investors. Hedgeable is targeting those investors who can invest between $50,000 and $200,000.

He said that the start-up’s average client has $250,000, which is the average account size in the country.

Hedgeable realizes that there are risks related with bitcoin but suggests that its expertise can help reduce the potential downsides of the digital currency.

However, Kane believes that bitcoin could prove to be a valuable addition to the Hedgeable clients’ portfolio. It will provide a valuable hedge, even with the risks involved.

Hedgeable hopes to offer convenience to all its clients. The start-up has plans to offer education to the people who wish to learn more about bitcoin before investing on it.

The purpose of this mission is to increase the exposure.

This way, clients who want to learn more about bitcoin can do it.

Kane announced that they’ll launch a dedicated bitcoin center in January 2015. This will be completely focused on retail investors.

When discussing how the start-up will pay for any new bitcoin it buys, Kane suggested that earnings and VC investments could be used for this promotion.