We know that delving into the world of financial jargon can be fairly indecipherable and dull, but it is important for the savvy crypto investor. Consider hedge funds: What are they? They’re a financial vehicle where investors pool their money together to be invested collectively by a fund manager.
Does this sound quite similar to a unit trust or mutual fund? Well, it is. However, hedge funds are usually significantly more aggressive and look to generate investors higher returns.
For our purposes, we want to talk about crypto hedge funds that invest in cryptocurrency projects. Think of it as handing your cash to a fund manager to invest in crypto on your behalf. A hedge fund might invest in Bitcoin, Ripple, Litecoin, and Ethereum or it might buy a bulk of altcoins during a pre-ICO sale. It all depends on where the fund manager thinks the best gains are to be had.
Crypto hedge funds are ideal for hands-off crypto investors who don’t have the time or know-how to buy and store crypto. Using a fund means that investors leave all the cryptocurrency stuff to the fund manager. This way you can get exposure to crypto as an asset class without actually having to buy coins and execute trades yourself. Most hedge funds are managed by people who are often considered to be experts in the market. These managers perform an in-depth analysis of where best to direct their client’s funds and get the best returns.
Here is a list of ten of the top crypto hedge funds to consider if you’re in the process of trying to decide where to invest.
Pantera Capital
First up is Pantera capital, which is a crypto hedge fund that has secured funding from powerful investors like Fortress Investment Group, Ribbit Capital, and Benchmark Capital. Based on its portfolio list, Pantera invests in a variety of assets such as Bitcoin, Ox, and Omise, along with BitOasis and BitPesa. Additionally, Pantera invests in cryptocurrency exchanges like Poloniex, Bitstamp, and Kraken.
Pantera was established in 2013 by former CFO of Macro Trading, Dan Morehead. Over its lifetime, the hedge fund has generated over 25,000 percent returns. To date, Pantera manages over $700 million in client funds across its five crypto funds. The firm is open to accredited investors looking to invest in blockchain and cryptocurrency enabled companies.
BitSpread
BitSpread is a market-making fund which looks to profit from investments and hedge funds in cryptocurrencies like Litecoin, Ripple, and Bitcoin. The firm oversees more than $100 million in client funds and makes its money based on market-making activities. Bitspread performs over 5,000 transactions each day and trades roughly $1 billion in cryptocurrencies on a monthly basis.
Leave A Comment