Crypto Hedge Funds Gradually Attracts Institutional Investors: An Overview
Cryptocurrencies, often referred to as digital assets, have gained several varied opinions- with some in support of its abilities, while others simply shut it down altogether. This is not something to blame such consumers, as its volatility has left many investors reconsidering their investment choices.
For any investor, the main goal will be to increase their Return on Investment (ROI), which makes sense as anyone putting in money would hope for multipliers. This supposedly has been the case for cryptocurrency hedge funds. While the profits do not normally exceed tremendously like we’ve witnessed Bitcoin experience, however, investors are guaranteed something, even if it’s as little as 5 percent.
Another factor that makes hedge funds more appealing is that they are mostly regulated, which is a growing concern among cryptocurrencies. At the time of writing, the crypto market has witnessed some percent of growth, which many were deprived of for weeks even months to name the least.
To better understand how institutional investors identify crypto hedge funds, the following will look closely at some opinions from experts along with existing funds. Based on a post shared by Blockonomi, investors have been reconsidering the likes of cryptocurrencies.
Drawing Interest For Institutional Investors
It has been stated that American investor and hedge fund manager Steven Cohen, has a growing interest in a blockchain-based hedge fund project developed by Autonomous Partners. A representative of Autonomous Partners took to Cohen’s behalf to share his beliefs, which seem to scream an obvious yes.
Autonomous Partners isn’t the only one to help lead institutional investors into the crypto sphere, as many crypto hedge funds have since been created and are working towards exposing that they too can be profitable.
Another, namely, CG Blockchain’s Blockchain Terminal (BCT) is anticipating that investors will use decentralized systems to explore hedge fund options. The team behind BCT will be collecting the necessary data from various platforms and sources for users to use as a reference in decision making.
Next, Blockonomi shared that of Quantopian, which works towards optimizing on convenience when it comes to crypto trading. Like the previous company, Quantopian will be providing the necessary tools and data, while leaving “strategy” to the people.
Out of them all comes, Numerai, which supposedly combines both artificial intelligence and blockchain technology to create a platform that outperforms current, traditional ones. Another facet worth mentioning here, as quoted by the Founder of Numerai, Richard Craib, is that data is supposedly given
“away for free with structure-preserving encryption and allows open participation by data scientists around the world.”
According to Blockchain Investment lawyer, John Lore, the number of investors seeking cryptocurrency advise is enormous, with investors yearning to get involved. He explicitly shared that “they’d put in approximately $600,000 and they, in January, were sitting at over $8 million.” He even shared that his son decided to choose crypto manager as a career due to the increased demand.
If institutional investors do successfully enter the crypto market, many believe that it can burst free from its infant stage, as such investor money alone can help to bring some depth and form to the market.