Tag Archives: Crypto fund

Bitcoin Investment Trust Creator Launches Four New Crypto Funds

Grayscale Investments, the company behind the Bitcoin Investment Trust (OTC: GBTC), announced Tuesday that it had opened four new investment products that provide investors with exposure to cryptocurrencies in a more familiar wrapper. Like Grayscale’s other products, these new trusts will be offered in a private placement to accredited investors who purchase a minimum of $10,000 worth of shares and submit to a one-year vesting period. Eventually, the trust sponsor will likely seek to list these shares on publicly-quoted over-the-counter (OTC) platforms, as it already has with the Bitcoin Investment Trust. Once shares are publicly-quoted, they have more liquidity and can also be purchased through retail brokerage accounts — though often at a steep premium over the value of the underlying assets. Though anathema to many financial analysts due to its heavy premium on the secondary market, the Bitcoin Investment Trust has proven to be extremely popular among both buyers who are nervous to hold cryptoassets directly and investors who desire to gain exposure to Bitcoin through tax-advantaged retirement accounts.

Reference: https://www.ccn.com/bitcoin-investment-trust-creator-launches-four-new-crypto-funds/

Hedge Fund Managers Pounce on Bitcoin Volatility

Sophisticated hedge fund traders are drawn to speculation, as evidenced by a more than a twofold increase in the number of crypto-driven hedge funds in recent months. Fintech analysis firm Autonomous NEXT told CCN hedge funds are currently overseeing between $3.5 billion and $5 billion in assets under management (AUM) across 226 crypto funds, in the four-month period leading up to today. Indeed, while much of institutional capital remains sidelined from the cryptocurrency market, the tide is beginning to shift. For instance, the most recent Autonomous data compares to 110 crypto hedge funds as of Oct. 18 and about three dozen at the start of 2017. Meanwhile, crypto funds have risen alongside the BTC price over the same period, over which time the bitcoin price advanced 70%. But there have been peaks and valleys, including 2017’s record 1,300% run, December’s near $20,000 high and a rocky January in which the BTC price shed about 30%. Hedge fund strategies thrive on this type of activity as they aren’t limited only to betting on the rise in the BTC price.

Reference: https://www.ccn.com/hedge-fund-managers-pounce-on-bitcoin-volatility/