Top 10 Crypto Hedge Funds
It is imperative for any crypto investor to be acquainted with financial jargon. For instance, hedge funds are platform where investors pool their money to be invested as a unit by a hedge fund manager. While the working mechanism of hedge funds is similar to mutual funds and unit trust, hedge funds tend to be more aggressive and aim to generate higher profits for their investors.
Crypto hedge funds take money from investors and invest in digital assets on their behalf. Therefore, the cryptocurrency in which a hedge fund invests is at the discretion of the fund manager. It can be Bitcoin, Litecoin, Ethereum, or any other altcoin. Usually, the fund manager opts for the assets they perceive to have the highest potential returns.
Investing through crypto hedge funds is made for traders who either do not have the time or do not know how to profitably trade in digital currencies. Essentially, such investors earn profits passively as the entirety of trading transactions is overseen by hedge fund managers. Hedge fund managers have to be adept at trading in crypto assets. This means that they have to have excellent analysis skills so that they can guarantee profits for their clients.
Below is a list of the top ten crypto hedge funds in the crypto space.
Pantera Capital is backed by leading corporate institutions such as Ribbit Capital, Fortress Investment Group and Benchmark Capital. The hedge fund invests in several digital assets, including Ox, Bitcoin, BitPesa, Omise, and BitOasis. Moreover, the company also works with cryptocurrency exchange platforms such as Poloniex, Kraken and BitStamp.
Pantera Capital was founded five years ago by Dan Morehead, previously the Chief Financial Officer at Macro Trading. The company is renowned for its remarkable performances, having generated over 25,000% worth of profits since its inception. At the time of writing, Pantera Capital was overseeing over $700 million in investors funds across various crypto assets.
BitSpread is a crypto hedge fund that invests in Bitcoin, Litecoin, Ethereum, Bitcoin Cash, and Ripple. Its primary source of money is market-making activities. Currently, the company holds over $100 million in client funds. Over a period of 24 hours, BitSpread averages 5,000 transactions, amounting to monthly trading volume of about $1 billion.
BitSpread was established in 2014 by Cedric Jeanson. Cedric is a huge fan of cryptocurrencies.
Silver 8 Capital
In addition to managing crypto investments for its clients, this company also invests in promising blockchain and cryptocurrency startups. Presently, Silver 8 is managing over $300 million in client funds.
Silver 8 was created in 2015 by two experienced investors, Jose Suarez and Manuel Anguita.
Having been in existence for five years, the Grayscale crypto hedge fund currently has an asset base worth $1.6 billion. This makes it one of the most valuable hedge funds in the crypto space. Its founder, Barry Silbert, is an ardent believer in the future of virtual currencies. For this reason, this fund invests in an array of digital assets, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple, and Zcash.
Blackmoon Financial supports both digital and traditional investments. The platform also allows other hedge fund managers to establish their own tokenized funds. Fundamentally, it is a platform designed by hedge fund managers, for hedge fund managers.
Additionally, Blackmoon assists fund managers in complying with legal requirements. This means that their investors have a reduced chance of facing legal action due to non-compliance. This favors wealthy individuals who intend to invest large amounts of money.
The company was created in 2014 by Oleg Seydak.
CoinCapital is crypto hedge fund that mainly deals with crypto investments and blockchain startups. The objective of this company is to promote the adoption of decentralized approach in the investments sector. The firm was established by Jeff Nabbers and Ryan Ballman. Before CoinCapital, these two were working on the decentralization of retirement assets. The client base of CoinCapital consists of blockchain startups, individual investors and institutional investors.
BitBull is a crypto hedge fund that is based in San Francisco, California. It was established in 2016 by Joe DiPasquale. Notably, BitBull is open to all types of investors and does not charge any fees. However, the minimum investment amount is $100,000.
The firm also offers venture capital funding to promising cryptocurrency projects.
As of now, General Crypto has an asset base worth over $25 million. The firm prioritizes investing in digital currencies that offer solutions to real-world challenges. For example, the company invested in Ripple because it addresses the issues facing international money transfer. Likewise, General Crypto invested in Golem because it facilitates the decentralization of computing power.
Another key principle of General Crypto is investing in assets that can be easily liquidated. This ensures that the hedge fund has sufficient liquidity throughout. The company was founded by Logan Kulgar and Zach Hamilton.
Brian Kelly Capital Management (BKCM)
As the name suggests, this fund was established by Brian Kelly. Although it is still new to the market, the firm currently manages assets worth $50 million. It offers a three-tiered investment approach for its clients, with ICOs taking 20%, buy-and-hold taking 50%, and the remainder being managed by BKCM.
BKCM invests in popular cryptocurrencies such as Bitcoin, Litecoin, Ethereum, and Ripple, as well as lesser altcoins such as Augur, Siacoin and Golem.
Superbloom emphasizes on simplicity and diversity of crypto investments. Every year, the company avails new tokens and reduces charges imposed on their clients to incentivize investment in digital assets.
The crypto space has a flurry of hedge funds from which investors can choose. The options mentioned above are just a starting point, as many similar funds are created on a daily basis. However, it is important to gauge the reputation of a hedge fund before trusting them with your money.