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A Bitcoin Arbitrage Fund with a 10% APR

BitBays is an online bitcoin exchange that offers access to the Bitbays Bitcoin (BTC) Arbitrage Fund. It is run by an entrepreneur named Mike Gropp.

Sign up for an account by clicking here.

The BTC Arbitrage Fund has an annual percentage rate of return equal to 10.95%.

I have invested in this fund and made around $145 since I purchased shares in July of 2015.

I consider it to be fairly risky because if the value of Bitcoin were to drop it would cause the value of the Arbitrage Fund shares to drop as well. Bitcoin priced in USD has been rather volatile.

Another option on BitBays is the USD Arbitrage Fund. This works the same way as the BTC Fund in that it takes advantage of price differences on various exchanges but instead of holding the proceeds in BTC they are held in USD.

The USD Arbitrage Fund pays 12.95% and because it is denominated in USD you eliminate the Bitcoin price fluctuation risk (and potential for reward). You also expose yourself to USD devaluation risk.

With the increase in BTC price leading up to the June 2016 Brexit I decided to sell some of my BTC Arbitrage Fund shares, convert the BTC to USD and move the proceeds to the USD Arbitrage Fund as a way of locking in some of the gains.

There is also an Arbitrage Fund based in CNY (Chinese Yuan) if you’re interested in exposure to that currency.

BitBays Arbitrage Fund

If you decide to create and account on BitBays please do so using this link: BitBays.com

In order to buy into the BTC Arbitrage Fund you need Bitcoins.

I buy Bitcoins from CoinBase.com, but you can buy Bitcoins from any number of exchanges including BitBays.com.

If you sign up for an account at Coinbase it would be appreciated if you used this link and as a bonus you’ll get $10 in Bitcoin and so will I.

If I were just starting out, I’d use the Coinbase link to purchase $100 in BTC, then take the $100, plus the $10 sign up bonus and invest that in the BTC Arbitrage Fund.

The BitBays Arbitrage Fund has been a great way way for me to Generate Passive Income. The Arbitrage Fund also provides the opportunity for Capital Appreciation (and loss) if the value of Bitcoins goes up. Not only that but it helps me to diversify out of the dollar to Preserve my Purchasing Power and hedge against Geopolitical Risk since Bitcoin is not controlled by a central bank. Finally it is a Liquid Investment because I can trade out of the Arbitrage Fund at any time.