Greetings VAULT and FXN communities,
The FXN team has done a great job hedging the trade pool against some of the most difficult market conditions seen in years. COVID-19, the coronavirus that has now spread to over 60 countries, has made a significant impact on global markets. In particular, the value of gold plummeted on Friday of last week, opening at $1645/ounce and closing at $1586.
XAU/USD 1H chart. Note the precipitous drop at the end of February.
Adding to the difficulty was oil’s drop on Friday.
Despite the difficult conditions, Bjorn and team managed to close week 3 with a modest gain of 2.1%, and week 4 with a modest loss of 1%.
Overall, the total value of the pool is still up. As it currently stands (and a lot of trades are still open), the pool value is $21,950. At the end of week 2, the value was $21,334, so this still marks a small gain.
On a more positive note, since these funds are held outside of BTC, the BTC value of the pool has gone up. This is due to BTC’s rapid decline below the $10k mark. Currently, BTC has been hovering between $8.5k - $8.8k. Taking an average value of $8.65k per BTC, the BTC pool value is 2.65 BTC.
As stated in the previous update, buybacks are expected to begin once the trading pool reaches 4 BTC, so while the $-value has remained relatively stable, the BTC value has gone up, which is a good sign for FXN overall.
As the market stabilizes and recovers, the FX trading team is sure to continue making solid returns against USD and BTC.
Stay tuned for more updates and join the VAULT server!