The Bitcoin boom reaches the world of asset managers. They try to make it easier for investors to access the realm of virtual currencies. Many rely on simple strategies that are similar to each other.
They are called Crypto Asset Fund, Block Asset Management, 1confirmation, Bitwise Asset Management or Polychain Capital. The names always sound a bit mysterious, and accordingly, “Crypto” particularly likes to appear as a component. They all jump on the course rocket called “Bitcoin”.
And while some exchanges are now commercializing products based on this virtual currency, these funds have long been taking advantage of the momentum and collecting money from customers. In doing so, they sometimes do little more than any single investor could do. They buy bitcoins and other crypto currencies for their customers’ money. This saves them from dealing with topics such as “Bitcoin exchanges” for buying and “wallets” for storing the electronic coins.
Relatively new is Crescent Crypto Asset Management, a company founded by three young men in the summer, Ali Hassan, Christopher Matta and Michael Kazley. They met at Goldman Sachs and praise each follow this link to the Bitcoin Code other with recommendations on LinkedIn.
End of a flight?
Bitcoin falls below $ 13,000
The crypto-currency Bitcoin has come under heavy pressure before Christmas. The value of the cyber defense fell within a few hours by more than 20 percent.
Your concept is simple. They are looking for wealthy investors – the investment must be at least $ 100,000 – and buy virtual currencies. In doing so, they prefer a passive, quasi-index style of investing, as it is currently causing a stir on the stock markets worldwide. They buy, weighted by capitalization, the 20 largest crypto currencies in the world. They want to portray around 80 percent of the market weight of all these currencies. And, as proven in the fund industry, they argue backwards, figuring out what an investor would have earned if the fund had existed for some time and he’d already stepped in.
It turns out that the Crescent mixture has grown even more stormy than Bitcoins alone. In addition, in line with the prevailing portfolio theory, they emphasize that their crypto fund is developing largely independently of other areas of the capital market, which is considered a plus point from a risk perspective.
Bitcoin critics sound the alarm
“Highly speculative transactions with possibility of total loss”
Felix Hufeld, President of the Federal Financial Supervisory Authority (BaFin) Source: dpaDeutsche Bundesbank Jens Weidmann Source: REUTERSValdis Dombrovskis: The EU Commission warns against risks of the cyber currency Bitcoin for investors and consumers. There is a risk that they you can choose the english language will lose all their assets, said Vice-President of the European Commission, Valdis Dombrovskis. Investors should realize that the bitcoin price could fall at any moment. “Virtual currencies like Bitcoin are not really currencies.” Dombrovskis said he called on EU bankers to update their warnings on Bitcoin. Source: REUTERS
Passive style is just one of many strategies
For the portfolio at the end of November, the fund is the ripple currency in the top three positions, with 68 percent Bitcoins, 19 percent ether, the currency of Etherum, and just under 5 percent XRP. So the fund is very Bitcoin-heavy. However, since the beginning of the year to the end of November, other currencies have outperformed Bitcoins by around 900%. The strongest increase was at NEO with more than 27,000 percent. However, Neo was only weighted at 0.55 percent, putting it in eighth place in the portfolio.
The idea is moderately original. Crypto Asset Management, for example, offers a fund with the 30 most important crypto currencies, where the weighting is constantly adjusted instead of just once a quarter. Bitwise invests in the ten largest and adjusts monthly.
Goldman Sachs plans digital currency trading unit
The US bank Goldman Sachs wants to create a trade area for cryptocurrencies like Bitcoin, according to a media report. The business should go to the start of June.
The logo of Goldman Sachs Source: REUTERS
Passive style is just one of many strategies. Particularly unusual examples are 1confirmation, supported by the well-known investor Mark Cuban, or Polychain with Peter Thiel in the back. These two funds are based on the idea that classical companies will be replaced over time by decentralized organizations in which investors are involved through electronic voting.
In contrast, the concept of Pantera Capital appears relatively traditional. Invest this fund