An investment or a bet?
Cryptocurrency continued to steal the spotlight in the market. The rise of Bitcoin, Ethereum, and Dogecoin has opened the door for crypto hedge funds.
Some hedge funds handle crypto-securities. This new market continues to grow with the support of major banks, businesses and investors. But it’s important to note that hedge funds are generally only available to accredited investors. They often require higher minimum investments.
What is a hedge fund?
A hedge fund is a pool of funds that uses different investment strategies. Its funding can come from investors, Wall Street banks, and other hedge funds.
The goal of a hedge fund is often to maximize returns and minimize risk. Hedge funds are also somewhat similar to mutual funds. However, hedge funds tend to have more aggressive investment strategies.
Unlike most mutual funds, hedge funds can invest money in a wider variety of assets using non-traditional investing techniques. The funds can invest in land, real estate, currencies and other alternative investments.
Hedge funds are less regulated than many other funds. They don’t have as many protections in place for small retail investors. As a result, the investment decisions of hedge fund managers face fewer constraints. This enables the rise of crypto hedge funds and may make them riskier than your traditional investments.
For most hedge funds, you must meet certain income and net worth criteria to become an investor. In general, only accredited investors can invest in these funds. They also tend to have high management fees.
The rise of the cryptocurrency hedge fund
The future of money is uncertain. Crypto-currencies inaugurate a movement of decentralization of financial services. While the ups and downs continue, they continue to make great strides towards general adoption.
Founder of Manward Press, Andy Snyder gave a glimpse into the future of money and the old system …
A decentralized currency like Bitcoin does not require a central server. If one computer crashes, others are there to instantly fix the holes. The blockchain never sees a bug.
It’s like Scaramucci said. Money is little more than technology. It is a replacement for the barter system.
Today our technology is based on green paper and a computer system that was designed decades ago.
There is new technology available.
And all signs are that a replacement for the old one is coming soon.
What it looks like, really nobody knows. But it will be transformative. It will involve the blockchain and involve some sort of cryptocurrency – and most likely several of them.
No one can tell us for sure where the future of money is going. But it’s looking up, with many big ones banks and funds take steps to embrace cryptocurrency.
Cryptocurrency is still in its infancy. It is a little over ten years old and its potential attracts beginners and experienced investors in all fields. However, the volatile nature of cryptocurrencies still keeps many investors away.
On top of that, there are few regulations regarding digital currencies. Laws tend to lag behind new innovations. So if you can afford this uncertainty and other risks, you could win big in the long run.
With this great potential, hedge funds have jumped into action. They are driving demand for many crypto products. Banks are also helping to streamline the process. They are bringing banking services into the next generation. Let’s take a look at some of the best crypto hedge funds to watch …
Highlights of the Crypto Hedge Fund
I have included the highlights of the crypto hedge funds. They might be worth considering if you have the funds to invest. Let’s take a closer look …
Polychain Capital is one of the most popular cryptocurrency hedge funds to date. The fund is considered to be the world’s leading digital asset hedge fund.
This fund is aimed at institutional investors, with a minimum investment of one million dollars. According to Polychain Capital, the firm values ”a long-term vision, fierce intelligence, quantitative reasoning and unselfish and open-minded people.”
This fund invests in global blockchain assets that help advance cryptocurrency adoption. The fund was founded by Olaf Carlson-Wee, former head of risk and products at Coinbase.
Pantera Capital manages nearly $ 5 billion in assets. Its first crypto hedge fund has been around since 2013 and is one of the oldest and most credible funds of its kind.
Pantera Capital is the first institutional asset manager to invest solely in blockchain technology and digital assets. However, you must have $ 100,000 to be eligible to invest in this fund. This fund is ideal for institutional investors or investors who have a lot of money to invest.
Unlike the second hedge fund, CoinCapital looks to retail investors. The fund has relatively low investment criteria. To be considered, your net worth must be at least $ 2.1 million.
This fund is known for its investments in blockchain technology, individual coin offerings, and cryptocurrencies. It currently manages over 40 cryptocurrencies. Some of the fund’s holdings include Bitcoin, Ethereum, and Ripple.
Final thoughts: risk or reward?
Both cryptocurrency and hedge funds are high risk and very rewarding by nature. When you combine the two, you could win – or lose – big. The future of digital assets is uncertain.
There is no way to predict the future of the market, and only time will tell if the crypto wave continues. If you’re risk tolerant with deep pockets, crypto hedge funds might be on your radar. But you should always do your own research before investing.
To find even better crypto investment opportunities, consider signing up for Manly financial summary. It’s a free email newsletter packed with information. Andy Snyder (cited above) provides some unique crypto tips and tricks.