Background

Bitcoin is evolving into the world's premier store of value, while other crypto assets increasingly trend toward zero when denominated in BTC terms. As Bitcoin matures as an asset class, a growing divergence is taking place in investors' minds between Bitcoin (a non-sovereign store of value) and other "crypto assets."

The current market presents three significant opportunities:

First, there is a widening performance gap between Bitcoin and alternative cryptocurrencies. When denominated in BTC terms, virtually all other crypto assets show a consistent downward trend over multi-year timeframes.

Second, over $100B in "zombie chain" market capitalization exists in projects with minimal utility, developer activity, or genuine adoption. These overvalued networks maintain their valuations primarily through intangible factors like community sentiment and historical survival through multiple cycles.

Third, we're witnessing the emergence of memecoins representing late-stage financial nihilism. While some memecoins may briefly outperform Bitcoin, 99.9% will ultimately decline to zero, creating substantial shorting opportunities.

Product Vision and Strategy

Zeropoint Research will build a high-performance Bitcoin-denominated fund focused on three core strategies:

1. Leveraged Long Bitcoin (~90% of balance sheet)

We maintain approximately 90% of our balance sheet in spot BTC, using it as collateral to borrow alternative coins for our short positions. The proceeds from altcoin sales are reinvested to increase our Bitcoin holdings and recycled into collateral, gradually building a leveraged long bitcoin position.

This approach allows us to maintain maximum exposure to Bitcoin's upside while using that same exposure to generate additional returns through careful leverage.

2. Short Altcoins

Our altcoin short strategy involves taking out loans denominated in these currencies to fund BTC buybacks and other trading positions. We'll also establish leveraged short positions through perpetual futures contracts on select concentrated positions.

We focus particularly on "zombie chains" - networks valued at over $1B despite showing minimal genuine adoption or utility. These present excellent short opportunities as their valuations are likely to decline significantly over time.

3. Short Memecoins

While select memecoins may briefly outperform Bitcoin during speculative frenzies, we maintain a strategic short bias since 99.9% of memecoins are fundamentally worthless and will ultimately decline against Bitcoin. Our approach involves careful position sizing and timing to capitalize on the inevitable collapse of these tokens.

Market Perspective

We identify three distinct market cycles that inform our strategy:

Past Cycle (2017-2022): VC-Funded Tech-Alts

The previous cycle was dominated by VC-funded "tech-alts" whose insider-only rounds were dumped at the peak of the market in 2021/22. Retail investors served as exit liquidity, creating deep skepticism toward VC-backed token launches. This era created many of today's "zombie chains" that maintain inexplicably high valuations despite minimal utility.

Current Cycle (2023-2026): Memecoin Mania

Today's market is characterized by retail investors seeking "the next Bitcoin" through fair-launched memecoins and AI-related tokens. While these launches avoid the insider allocations that plagued the previous cycle, they represent an even more extreme form of speculation. The vast majority are classic pump and dump schemes that will crash to zero once they begin trading on decentralized exchanges.

Future Cycle (2026+): Bitcoin Supercycle

Looking ahead, we anticipate Bitcoin's market cap reaching approximately $8T, surpassing gold's market cap at a price around $500k per BTC. While this could occur during 2025/2026, we believe it's more likely to happen at the beginning of the 2027/28 bull run, potentially reaching $1M per BTC or higher.

During this period, we expect altcoin and memecoin prices relative to Bitcoin to decline dramatically as the market matures and capital flows concentrate in Bitcoin.

Technical Strategy

Our technical approach is built on four key pillars:

Bitcoin Collateral Management

We utilize Bitcoin as our primary collateral base, carefully managing leverage ratios and maintaining robust risk management systems. This allows us to maximize our Bitcoin exposure while generating additional returns through strategic shorting.

Advanced Derivatives Trading

Our team employs sophisticated perpetual futures strategies across multiple venues, taking advantage of funding rates and market inefficiencies while maintaining strict risk parameters.

Risk Management Systems

Position sizing and leverage are managed through proprietary risk models that account for market volatility, correlation effects, and liquidity conditions. We maintain strict stop-loss disciplines and position limits.

Custody Security

We implement institutional-grade custody solutions with multi-signature requirements and geographic distribution of key holders. Regular security audits and penetration testing ensure the safety of fund assets.

Products and Services

Our initial product offering centers on a Bitcoin-denominated investment fund that aims to outperform Bitcoin through strategic long/short positioning. The fund is benchmarked against BTC returns, setting a high performance bar that aligns with our investors' interests.

Key features include:

• Bitcoin denomination for all returns and reporting
• Transparent fee structure with high water mark
• Regular investor communications and reporting
• Institutional-grade custody and security

Future service expansion may include:

• Additional fund products targeting specific strategies
• Advisory services for institutional Bitcoin adoption
• Research and analysis for fund investors
• Educational resources on Bitcoin-denominated investing

Implementation Plan

Our rollout strategy consists of three phases:

Phase 1: Fund Launch (Q2 2025)

The initial phase focuses on establishing the operational foundation:

• Completing all regulatory requirements and registrations
• Implementing institutional-grade custody solutions
• Conducting initial capital raise from strategic investors
• Building core team and infrastructure

Phase 2: Position Building (Q3-Q4 2025)

During this phase we begin deploying capital:

• Establishing initial Bitcoin collateral positions
• Building strategic short positions in select altcoins
• Implementing core trading systems and risk management
• Developing reporting and investor communication channels

Phase 3: Scale Operations (2026+)

The final phase focuses on growth and optimization:

• Expanding AUM through additional investor onboarding
• Adding sophisticated trading strategies and instruments
• Preparing for opportunities in the coming bear market
• Scaling operational infrastructure and team

Summary

Our mission is to accelerate the transition to a Bitcoin-centered economy while generating superior risk-adjusted returns for our investors. We achieve this through:

1. Accelerating the Bitcoin-focused future by concentrating capital in BTC
2. Generating returns that outperform simple BTC holding strategies
3. Countering speculative attacks on Bitcoin through strategic shorting
4. Supporting the transition to a Bitcoin-centered financial system

Through careful execution of this strategy, we aim to both generate substantial returns for our investors and support Bitcoin's emergence as the world's premier store of value and unit of account.