Newly Formed Circuit Capital Crypto Hedge Fund Remains Extremely Bullish on Bitcoin’s Potential
Despite the falling prices of almost all of today's premier digital currencies, there is no denying that the use and overall adoption of altcoins has increased quite significantly all through 2018— at least that’s the point-of-view that the four founders of Circuit Capital, a new cryptocurrency hedge fund based in San Francisco, hold.
The aforementioned hedge fund is all set to go live this coming January and the team behind this operation comprises of two Silicon Valley venture capitalists, a former Deutsche Bank AG trader along with a private-equity analyst. Together, they have conjured an all new index that is designed to track the ‘market take-up’ of various digital coins in real time.
In regards to the matter, Eugene NG, a partner at Circuit Capital, was noted as saying:
“Despite what is happening with prices, we’re seeing adoption growing and a lot of people are looking to scale crypto businesses. We are starting to see talent moving into this space and institutional infrastructure developing.”
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With the price of Bitcoin now finally coming back to Earth, many so called “experts” have been quick to call the altcoin’s ascent into the mainstream as a “passing fad”. However, Eugene who has served as a derivatives trader previously, believes that Bitcoin is just getting started. This exact same view is also held by Aaron Tay, another partner at Circuit Capital.
As per a story on Bloomberg, Circuit Capital is looking to raise around $30 million through its initial launch (that is set to take place in the first quarter of 2019). While the aforementioned amount is quite miniscule when compared to the assets held by other macro hedge funds, there is definitely value to be found in this project.
What’s on Offer Here?
According to media reports, Circuit has recently devised an all new index that has the potential to measure/assess the mainstream adoption of any blockchain technology that supports different digital currencies. To elaborate further on this point, we can see that the benchmark used for such an action is derived through the use of 10 data points such as:
- Number of active crypto wallets
- Transaction volumes
- Hash rate
- Web searches for articles on the crypto industry
Even though the prices of many premier crypto assets have fallen since the start of this year, many institutional players have continued to see a lot of opportunity within this burgeoning domain. Only time will now tell how the future of Bitcoin plays out from here on end.