RabbitSuitThe approach
What this is, why the asset is Bitcoin, why it exists, and what can overrule it. For how it is doing, the fund page carries the record →
What this is
A Bitcoin fund whose entire investment process is one dial.
The fund holds R × NAV in Bitcoin, where R ∈ [0, 1] is recomputed every day by a fully mechanical, rules-based process. There is no discretionary position sizing, and no code path that increases Bitcoin exposure beyond the current R.
The remaining (1 − R) — the idle leg — is never idle in the sense of doing nothing. It holds exactly one of money market, world equities, gold, Nasdaq-100 or 20+y US Treasuries, re-evaluated at each month-end by a mechanical rule. Switching the parked asset never changes Bitcoin exposure.
Four model funds run the same dial — one R per day, computed once from published closes, applied everywhere. They differ only in instruments and reporting currency; they exist so the process can be watched in each implementable variant.
It runs only its operators' own capital. There are no outside investors and no way to invest in it, and nothing on this site is investment advice or a recommendation to buy or sell any asset. What is published — the posture, the record, the journal — is a public track record kept for transparency, and for anyone curious about a fully mechanical Bitcoin allocation.
The rules themselves are not frozen: the fund is operated at the manager's discretion at the design level. The definition of R is the best rule found so far and may evolve given strong evidence or conviction; the idle-leg treatment — momentum parking, today — may be replaced the same way, and its asset universe may change over time. Every such change requires a written rationale and a full re-backtest, is barred mid-drawdown, and is published in the journal. None of it happens day-to-day: intraday, the dial is law.
Why Bitcoin
The dial sizes exactly one asset. Five observations about that asset carry the choice — and each ends in a design decision.
The only real digital asset
Bitcoin is a category of one: the only digital asset that is genuinely scarce and belongs entirely to whoever holds it — no issuer, no company behind it, no one who can change what it is. What it offers is a combination nothing else, digital or physical, has:
- Full ownership
- A bearer asset: held in self-custody there is no counterparty, no vault operator and no issuer between the holder and the asset.
- Censorship-resistant
- Permissionless to hold and to transfer; no administrator can freeze a balance, revise the ledger or exclude a participant.
- Cheap to hold and move
- No carrying costs, divisible to eight decimals, and billions of dollars settle globally in minutes for a few dollars in fees — against weeks of vault logistics for the metal it competes with.
- An open ledger
- Supply and flows are verifiable by anyone in real time, and the holder base's aggregate cost basis is readable on-chain. No other asset publishes its own books.
The design decision: these properties only fully hold for self-custodied Bitcoin — and that is exactly the point: they are what give the asset its intrinsic value, together with the capped supply. The fund's business is exposure to that value's price action, through whichever instrument implements it best for each fund. And the open ledger keeps the asset's internal state measurable in a way no equity, bond or metal offers — part of why a fully mechanical process is possible at all.
A scarce asset in a debasement regime
Bitcoin is the only major asset whose supply is fixed by code: 21 million units on an issuance schedule that no board, committee or government can revise. The record it stands against is one-sided — every fiat currency ever launched has lost value against hard assets, the major ones by roughly 99% against gold since leaving it — and the fiscal arithmetic of the large developed sovereigns makes recurring monetary expansion the path of least resistance, not a policy accident.
The design decision: an asset that cannot be debased is the natural thing to hold against a system whose release valve is debasement. That is why the fund exists at all — and why its Bitcoin exposure can reach 100% of NAV rather than a token sleeve.
A structural trend you can measure
For sixteen years Bitcoin's price has tracked a single power-law trend — through four complete boom-bust cycles, with the fit explaining roughly 96% of the variance in log price. That regularity is the signature of adoption, not momentum. The record is asymmetric, though: as a cheapness gauge the trend has held up well; as a generator of upside price targets it has repeatedly overpromised.
The design decision: the fund never trades on price targets — it sizes to present conditions. And the trend supplies the fund-terminal falsifier quoted below: a sustained break of the trend line itself would mean adoption in reverse, and with it the end of the fund's premise.
One dominant, observable driver
Bitcoin tracks global liquidity more consistently than any other major asset class: in a 2013–2024 study it moved with it in 83% of twelve-month periods — ahead of equities, gold and bonds — with a long-run correlation near 0.94 to global money supply. There are no earnings, dividends, index-inclusion flows or safe-haven bids contaminating the signal — the factors that blur the same relationship in every other asset.
The design decision: an asset with one dominant, published, measurable macro driver is an asset a mechanical rule can size. Most assets never offer that. It is what makes a daily, fully rules-based R feasible rather than aspirational.
Cycles brutal enough to demand a rule
Bitcoin is the only asset we know of that has drawn down more than 75% on four separate occasions and recovered to a new all-time high every time. Over the decade to mid-2025 it still produced the highest Sharpe of any major asset class — while carrying the worst drawdowns in the comparison set.
The design decision: the return is structural, the drawdowns are cyclical, and the cycle extremes leave measurable footprints in public data. Buy-and-hold pays for the trend with −80% winters; staying out forfeits the trend entirely. A dial that scales exposure to conditions is the instrument this asset's shape demands.
Why it exists
To remove a specific failure mode, and to be judged on a specific claim.
The claim
HODL-class CAGR at a fraction of the drawdown, judged on Sharpe and MAR. Total-return deltas are published, but they are subordinate to the risk-adjusted comparison.
Every performance view therefore carries two benchmarks as first-class rows: Bitcoin buy-and-hold (the cost of timidity) and a money-market hold (the cost of carry).
The pre-commitments
No averaging into a falling R. R falling is the formula de-risking; overriding it with discretion is the failure mode this fund exists to remove.
Discretion is permitted in exactly one direction: down. Every intervention the fund can make reduces exposure (the stress freeze is down-only), and each was written down before the situation it applies to.
At the moment it fires it will look like the buying opportunity of a lifetime — that is precisely why the criterion is pre-committed.
How the dial works
What can overrule the dial
Pre-committed interventions that rank above the formula. Every one of them can only reduce exposure — the stress freeze is down-only, buys stay blocked; none can increase it.
- stress freezearmed
A freeze for systemic stress episodes — forced selling across markets. Down-only: R may fall with the formula but not rise, and buys stay blocked.
- kill switcharmed
The full stop — Bitcoin exposure goes to zero, overriding even the floor.
- adoption falsifierarmed
The fund-terminal test: pre-committed evidence that adoption has reversed. While it stands, all buying stops.
- Bitcoin flooractive
Always on — a small Bitcoin floor the allocation never drops below.
Every proposal, activation and lift is journaled and audited. Current status on Posture →
Glossary
The words the numbers are reported in. Dotted-underlined terms across the site link back here; the same gloss appears on hover.
Reporting vocabulary
- R — deployment fraction · 0 → 1
- The share of NAV held in Bitcoin. Everything left over is the idle leg.
- CAGR — compound annual growth rate
- The constant yearly rate that would have taken the series from its first value to its last. Withheld until a record spans 90 days — annualising a few days of NAV says nothing.
- maxDD — worst drawdown
- The deepest peak-to-trough fall over the period. The number the claim is really about: HODL-class CAGR at a fraction of this.
- Sharpe — return per unit of volatility
- Excess return over the money-market benchmark, divided by volatility. The claim is judged here, not on total return.
- MAR — return per unit of drawdown
- CAGR divided by the worst drawdown. The second risk-adjusted test, beside Sharpe.
- TWR — time-weighted return
- Return with contributions and withdrawals netted out, so it measures the process rather than the timing of deposits.
- SI — since inception
- Measured from the fund's 100 starting index at inception to the latest close — its whole life including deployment costs, not a window.
- backtest — the simulated record
- The same rules re-run over stored history (full span 2012-02-01 to 2026-08-02 — the day before the funds went live; headline window 2018-04-13 onward — the mature era). No fund existed over this period and no order was ever filled.