Reality Shares To Launch A $100 Million Dollar Cryptocurrency Hedge Fund
The Blockchain ETF provider, Reality Shares, will launch a $100 million dollars cryptocurrency hedge fund, according to a source that talked with Business Insider. According to the company, the cryptocurrency fund will have a multi-strategy. It will include a mix of arbitrage, venture, and directional strategies. Until now, the company was able to gather $25 million dollars for that fund.
Additionally, Reality Shares has also launched the first Chinese blockchain based exchange-traded fund (ETF) back in June 2018. The ETF, known as Nasdaq NextGen Economy ETF (BCLN), focuses in blockchain companies. The Chinese counterpart, (BCNA) backs only Blockchain companies that are based in China.
— Reality Shares (@RealityShares) August 15, 2018
As the company Crypto Fund Research informs, there are 466 different funds in the crypto industry. It is important to mention that 88 of them were launched before 2014, 32 in 2014, 30 in 2015, 42 in 2016, and 156 in 2017.
This year is different, and the number of ETFs created reached 96. By the end of the year experts believe that we will see 165 funds.
At the moment, there are only 28 different cryptocurrency funds that crossed the $100 million dollars mark. Reality Shares is part of other 75 crypto funds that have a market capitalization between $5 million to $100 million dollars.
There is still high volatility in the market. That means that people are still interested in the crypto world. At the beginning of the year, altcoins were skyrocketing, but since that moment, they lost more than 90% of their value.
Dan Morehead, CEO of Pantera Capital, explained:
“The main thing to remember is that bitcoin is very early-stage venture, but has real-time price feed – and that’s a unique thing. People get excited about the price and overreact.”
As Context Capital Partners LP explained, most of the 400 institutional investors said that are not so sure about cryptocurrencies. Some of the investors consider virtual currencies as an asset class and other consider them as a fraud.
Blockchain technology has attracted several investors due to the fact that regulators are not so hard on the matter. Some countries are already using the technology in different fields in order to improve efficiency and bureaucracy. For example, the Chinese president, Xi Jinping, has given very positive comments about the technology and the work that China is doing with it.