loader blockarb image
hero image

BUSDT - Blockarb USDT Arbitrage Income Fund

USDT, also known as Tether, is a stablecoin pegged to the U.S. dollar, offering the benefits of cryptocurrency with the stability of traditional fiat currency. With its value closely aligned with the U.S. dollar and easy convertibility to local currencies, USDT stands as a reliable and accessible digital asset for global investors.


The Blockarb USDT Arbitrage Income Fund is a specialized investment vehicle designed to deliver consistent returns through a USDT-denominated yield strategy. Aimed at investors seeking stability and predictable income, the fund leverages advanced arbitrage techniques to minimize risk and preserve capital.

usdt icon

Distribution Rate:

30 days Yield:

BUSDT Retail
BUSDT Business
BUSDT Enterprise

Fund Facts

  • Fund Name Blockarb™ USDT Arbitrage Income Fund (BUSDT)
  • Launch Date 7/05/2015
  • Fund Strategy Open-ended, arbitrage-driven digital asset income strategy
  • Investment Focus Stable yield generation through market-neutral arbitrage strategies
  • Total Asset 350,000,000
  • Denomination USDT
  • Expense Ratio 0.00001%
  • Liquidity Monthly
  • Risk Management Comprehensive risk mitigation through market-neutral strategies
  • Performance Reporting Quarterly reports on performance, allocation, and market analysis
  • Investment Term Recommended for short to medium -term holding (1 month or longer)

Documents & Downloads

Prospectus download

Fund Structure

The Blockarb USDT Arbitrage Income Fund operates under a Multi-Class or Tiered Sub-Fund Structure, offering multiple sub-funds within a single investment vehicle, each designed to meet diverse investor needs. This structure provides flexibility, allowing investors to choose sub-funds based on their capital, experience, and financial goals.


Each sub-fund has a unique investment strategy, risk profile, and fee structure, ensuring investors only pay for the services that match their chosen path. Retail investors gain access to institutional-grade trading tools and strategies, while institutional investors benefit from a liquid, retail-driven market that enhances efficiency, reduces costs, and improves stability.

The BUSDT sub-funds include:

  • Retail Access (BUSDT.R): Retail Access (BUSDT.R) is a sub-fund of the Blockarb USDT Arbitrage Income Fund tailored for individual retail investors, offering an affordable entry into digital asset arbitrage. It utilizes low-cost, market-neutral strategies such as exchange and statistical arbitrage, delivering stable returns regardless of market conditions. With a focus on providing steady income while minimizing volatility, BUSDT.R is an excellent choice for investors seeking reliable, low-risk returns in the digital asset space.

  • Business Access (BUSDT.B): Business Access (BUSDT.B) is a sub-fund of the Blockarb USDT Arbitrage Income Fund designed for small and medium businesses, as well as sophisticated investors. This sub-fund leverages a mix of arbitrage strategies, including exchange, statistical, and market-making arbitrage, to capture market inefficiencies and deliver higher returns. BUSDT.B balances moderate complexity with higher-than-average yield potential, making it ideal for investors seeking enhanced returns while maintaining a focus on capital preservation.

  • Enterprise Access (BUSDT.E): Enterprise Access (BUSDT.E) is the premier sub-fund of the Blockarb USDT Arbitrage Income Fund, tailored for large enterprises and institutional investors. This sub-fund capitalizes on large-scale market inefficiencies through sophisticated strategies such as exchange arbitrage, statistical arbitrage, market-making, and delta-neutral trading. BUSDT.E offers high-complexity, high-return potential, providing significant yields while managing risk through advanced, market-neutral techniques. It's designed for investors seeking substantial returns with a focus on strategic, long-term capital growth.
BUSDT.R (Retail) BUSDT.B (Business) BUSDT.E (Enterprise)
Fund Symbol BUSDT.R BUSDT.B BUSDT.E
Investment Strategies Exchange Arbitrage, Statistical Arbitrage Exchange Arbitrage, Statistical Arbitrage, Market Making Exchange Arbitrage, Statistical Arbitrage, Market Making, Delta-Neutral Trading
Minimum Subscription $1,000 $100,000 $1,000,000
Distribution Rate 24% 42% 60%
30-Day Yield 2% 3.5% 5%
Distribution Frequency Every 30 days Every 30 days Every 30 days
Expected Return Stable, low-risk returns with minimal volatility Medium-complexity, higher-than-average yield High-complexity, high-return strategy
Total Assets 192,500,000 USDT 70,000,000 USDT 87,500,000 USDT
Performance Fees 5% 10% 15%

Subscription & Redemption

The Blockarb USDT Arbitrage Income Fund (BUSDT) operates on a specialized subscription model designed to help investors earn consistent yields by leveraging their USDT assets. To participate in the fund, investors must first create a dedicated personal fund interface, which serves as the entry point to access the fund's advanced arbitrage systems.

How the Model Works:

  • Interface Creation: Investors begin by creating a dedicated personal fund interface. This interface allows them to manage their investments and interact with the fund’s systems.

  • Asset Deployment: Once the interface is set up, investors are required to purchase and deploy the USDT they wish to use for yield generation. This involves transferring their USDT assets into their personal Blockarb Fund portal.

  • Qualification and Integration: After deploying their USDT, the personal interface qualifies for integration into the fund’s suite of automated systems based on the subscription amount and the strategy suite it qualifies for. Once integrated, these systems continuously monitor various digital asset markets to identify pricing inefficiencies, enabling rapid action on arbitrage opportunities as they arise.

  • Yield Generation: The BUSDT Fund’s dynamic approach ensures effective utilization of investor capital to capture real-time arbitrage opportunities while maintaining a market-neutral stance. This strategy maximizes profit potential, regardless of market conditions.

Key Advantages of the BUSDT Subscription Model:

  • Direct Asset Control: Investors maintain control over their USDT while enabling its active deployment within the fund, allowing for flexible investment strategies.

  • Efficient Yield Generation: The automated systems capture arbitrage opportunities in real-time, ensuring that investor capital is utilized effectively to generate consistent returns.

  • Transparency and Accessibility: Through the personal fund portal, investors can easily track their USDT deployment and monitor the fund’s performance, providing clarity on how their capital is leveraged for yield.

Fund Participation and Performance Reporting

At Blockarb, participation in the fund is based on the amount of capital subscribed, not a fixed number of shares. This innovative structure allows each investor’s contribution to be quantified in monetary terms, providing a flexible and precise representation of their stake.


Performance is reported by calculating returns on the capital available when the fund’s systems identify and execute arbitrage opportunities. Additionally, the strategies chosen through the investor's interface influence these returns. Each investor’s performance is proportionate to the arbitrage profits generated during successful trades, governed by the fund’s internal parameters.


This structure accommodates varying investment amounts, dynamically adjusting to capital inflows and outflows. The model promotes transparency and ensures all investors benefit equitably, fostering an active, engaged participation in the fund’s success.

Subscription Redemption

  • Investors maintain full control over their subscription capital. This allows them to withdraw their initial investment at any time to their private wallets or digital asset exchanges, facilitating seamless conversion to local currency. This structure provides flexibility and ensures that investors can access their capital whenever they choose.

Profit Redemption

  • Profit redemption is structured to occur periodically, specifically at 30-day intervals. Investors can redeem profits generated by the fund during this period, subject to a standard performance fee rate. This fee is applied only to the profits generated, aligning the fund's expenses with its performance.

  • If an investor wishes to withdraw profits before the 30-day interval has elapsed, they incur double the standard performance fee. This is designed to compensate for the additional costs associated with spontaneous rebalancing and ensure the fund can effectively manage its investment strategies.

Fees Structure

The Blockarb Fund implements a transparent fee structure designed to align with investor returns and the fund’s performance. Below are the primary fee components:

Management Fees:

The BUSDT Fund does not charge any expense ratio on the subscription amount. Instead, all operational costs, platform maintenance, and strategy implementation expenses are covered through the fund’s performance-based fee structure. This ensures that investors’ capital is fully deployed for yield generation, with fees only applied to profits earned, aligning the fund’s interests with those of its investors.

Performance Fees:

The performance fee is only charged on profits generated by the fund and is designed to ensure that the fund managers are incentivized to maximize returns for investors. This fee varies depending on the sub-fund (Retail Access, Business Access, or Enterprise Access) and is charged as a percentage of the profit earned.

  • Standard Performance Fee Rate: Applied to profits at regular intervals (usually at 30-day periods).

  • Early Withdrawal Fee: If profits are withdrawn before the 30-day cycle, an early redemption fee is imposed, which doubles the standard performance fee. This fee compensates for the added costs of spontaneous rebalancing required by the fund.

Redemption Fees:

No fees are charged for subscription redemptions, meaning investors can withdraw their initial capital without penalty. However, as mentioned in the profit redemption section, a higher performance fee applies to early profit withdrawals before the 30-day period.

By linking fees directly to performance, the fund incentivizes growth and success for both investors and the fund's management, creating a symbiotic relationship where fees are charged fairly in proportion to profits generated. This ensures alignment of interests between the investors and fund managers.

Sub-Fund Name Management Fee Standard Performance Fee Early Withdrawal Fee
Retail Access 0.00001% 5% 10%
Business Access 0.0001% 10% 20%
Enterprise Access 0.001% 15% 30%

NAV Erosion Prevention

NAV erosion refers to the gradual decline in the Net Asset Value (NAV) of a fund, which is the total value of its assets minus its liabilities, divided by the number of outstanding shares or units. NAV erosion reduces the value per share and impacts long-term investor returns negatively. Several factors can cause NAV erosion, such as high fund expenses, market losses, or inefficient investment strategies.

Causes of NAV Erosion:

  • High Fees: If management or performance fees are high relative to returns, they can reduce the NAV over time.

  • Return of Capital: Some funds distribute part of the investor's original capital as dividends, which reduces NAV.

  • Market Losses: Declines in the value of the underlying assets lower the fund's NAV.

  • Futures Roll Costs (Contango/Backwardation): In funds like futures-based ETFs, rolling contracts in contango can erode NAV over time.

  • Liquidity Issues: Inability to liquidate assets efficiently or at favorable prices can lead to NAV degradation.

How Blockarb Mitigates NAV Erosion:

  • Market-Neutral Arbitrage: Blockarb employs sophisticated arbitrage strategies, which are market-neutral and don't rely on the direction of the market. This reduces exposure to market volatility and price fluctuations, mitigating the risk of NAV erosion due to market losses.

  • Low Fees and Performance-Based Charges: The automated systems capture arbitrage opportunities in real-time, ensuring that investor capital is utilized effectively to generate consistent returns.

  • Efficient Capital Deployment: The fund ensures that capital is actively used to exploit arbitrage opportunities, making the most of investor assets. Since Blockarb focuses on arbitrage across highly liquid digital asset markets, capital is efficiently deployed, minimizing idle time and loss from market inefficiencies.

  • Dynamic Rebalancing: Blockarb's automated systems constantly monitor and adjust positions in real-time, responding quickly to changes in market conditions to minimize risk and protect NAV from adverse price movements. Early withdrawals incur higher fees, ensuring the fund can rebalance smoothly without destabilizing the portfolio.

  • No Return of Capital: Blockarb does not erode NAV through return of capital. All distributions come from profits generated by arbitrage activities rather than a portion of the investor's original capital, preserving the fund's underlying value.

Performance

Here is the merged table showing the monthly performance breakdown for all three sub-funds (BUSDT.R, BUSDT.B, BUSDT.E) alongside the S&P 500 Index for the year 2023

2023 Monthly Performance Breakdown: BUSDT.R, BUSDT.B, BUSDT.E, and S&P 500 Index
Month BUSDT.R Return (%) BUSDT.B Return (%) BUSDT.E Return (%) S&P 500 Index (%)
January 1.97 3.47 4.94 -5.80
February 2.03 3.55 5.10 -2.45
March 1.78 3.42 4.82 3.68
April 2.01 3.10 5.28 1.68
May 2.02 3.59 4.30 0.31
June 1.96 3.41 4.70 6.39
July 2.04 3.52 5.40 3.11
August 1.59 3.01 4.60 -1.55
September 2.05 3.59 5.50 -5.35
October 1.95 3.55 4.90 -2.12
November 2.06 3.48 5.00 8.72
December 1.74 3.41 5.10 4.61
Total 23.2 41.1 59.6 8.39

Investment Risk Disclosure

Investment Risks

Investing in the Blockarb USDT Arbitrage Income Fund (BUSDT) involves risks that all investors should be aware of. Although the fund employs market-neutral strategies to reduce volatility, risks inherent in financial markets remain. Below are the primary risks associated with investing in the fund:

  • Market Risk: While the fund uses arbitrage strategies to minimize market risk, there is still exposure to sudden market movements that may impact returns. The fund is not entirely immune to adverse conditions in digital asset markets.

  • Liquidity Risk: The fund invests in digital assets and exchanges with high liquidity. However, in periods of extreme market stress or low market participation, liquidity may be impaired, potentially delaying redemption requests or causing price slippage.

  • Counterparty Risk:The fund engages in trades across multiple exchanges, and there is a risk that one or more counterparties may fail to meet their obligations. This could result in delayed or incomplete execution of trades, impacting fund performance.

  • Operational Risk: The fund relies on various technologies, platforms, and systems for trade execution and risk management. Any system failure, cybersecurity breach, or operational issue could disrupt fund performance and expose investors to losses.

  • Regulatory Risk: The regulatory environment for digital assets continues to evolve. Changes in laws, taxation, or the legal status of digital assets such as USDT could adversely affect the fund’s operations and performance.

  • Arbitrage Risk: Arbitrage opportunities can be fleeting, and the ability of the fund to capture inefficiencies in the market may diminish over time as markets become more efficient or competition for these opportunities increases.

  • Volatility and Pricing Risk: Although USDT is a stablecoin, the fund may engage in arbitrage strategies across various digital asset pairs, exposing it to volatility in those markets. Additionally, discrepancies in asset pricing across exchanges may impact returns.

  • Leverage Risk: While the fund uses conservative leverage, the use of leverage still magnifies gains and losses. In volatile market conditions, leveraged positions may result in larger-than-expected losses.

Disclosures

  • Past Performance: Past performance is not indicative of future results. The historical performance of the BUSDT Fund is presented for informational purposes only and should not be relied upon as a guarantee of future success.

  • No Assurance of Profitability: There can be no assurance that the fund will achieve its investment objectives or that investors will earn a profit. Investments in digital assets involve a high degree of risk, and the possibility of loss exists.

  • Not FDIC Insured: Investments in the Blockarb™ USDT Arbitrage Income Fund are not insured by the FDIC or any government agency. Investors should be prepared to bear the financial risks of investing in the fund.

  • Tax Considerations: Investors are responsible for understanding and adhering to applicable tax laws in their jurisdictions. Dividend distributions may be subject to local, state, and federal taxes. It is recommended that investors consult a tax advisor.

  • Conflicts of Interest: Blockarb™ may engage in activities that present potential conflicts of interest, including acting as a counterparty in transactions executed by the fund. The company will take steps to mitigate such conflicts, but investors should be aware of this possibility.

  • Fee Structure: The fund charges performance-based fees. These fees can reduce the overall return to investors, especially in periods of lower performance. Please review the fee structure carefully before investing.

  • Jurisdictional Risk: Investors should be aware of potential risks related to the legal standing of digital assets in different jurisdictions. Certain regulatory actions in the future may impact the fund's ability to operate in specific regions or restrict access to certain exchanges.

Importance Notice

This document is intended for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy shares of the Blockarb™ USDT Arbitrage Income Fund. Prospective investors should review the fund's full prospectus and consult with a financial advisor before making any investment decision.