Hedge Funds Investing in Cryptocurrencies ‘Exploding’ – 62 in Pipeline

with No Comments

Hedge Funds Investing in Cryptocurrencies 'Exploding' - 62 in Pipeline

With this year’s incredible gains in the price of bitcoin, the number of hedge funds with exposure to cryptocurrencies is “exploding.” Fund administrator MG Stover & Co, accounting firm Auther Bell, and law firm Cole-Frieman & Mallon alone have 62 in the pipeline.

Also read: Hedge Funds Are Quietly Investing in Bitcoin

Exploding Volumes

As the prices of bitcoin and other cryptocurrencies skyrocket, a large number of traders are seeking to launch hedge funds investing in them. Hedge Fund Alert recently reported that “the number of hedge funds investing in digital currencies is exploding.” The publication quoted CPA Corey Mclaughlin, managing member at Auther Bell, who said:

I’ve been in the hedge fund space since 1998, and I’ve never seen anything like it in volume of launches in a particular area. It’s just crazy.

Hedge Funds Investing in Cryptocurrencies 'Exploding' - 62 in PipelineMatt Stover, founder of MG Stover & Co, shared the sentiment. “This is the first time I can remember where we have had a hard time keeping up with the sales calls,” he said.

Institutional investors are surprisingly interested in cryptocurrencies, according to hedge fund lawyer Karl Cole-Frieman. “I wasn’t expecting so many institutional players to be interested in the asset class,” he was quoted saying. Recently, news.Bitcoin.com reported that hedge funds are quietly investing in bitcoin. With this year’s explosive gains in the price of bitcoin, Hedge funds that offer cryptocurrency exposure are seeing windfall gains.

62 Hedge Funds in the Pipeline

Among client funds administered by MG Stover & Co., 12 of them are running digital-currency strategies. The firm has also made agreements to service 25 more, the publication detailed. Arthur Bell is working with about 15 fund managers on cryptocurrency funds and expects to take on 20 more in the near future. Meanwhile, Cole-Frieman & Mallon has helped set up 7 cryptocurrency funds this year and has 17 more in the pipeline. Altogether, 62 new cryptocurrency hedge funds will be brought the market by these three firms alone.

Demand for Hedge Funds Investing in Cryptocurrencies 'Exploding' - 62 in the PipelineAmong the new entrants, there are both those simply taking long bets on bitcoin as well as those “devising hedge fund-like strategies, such as capturing the arbitrage among various currencies,” the publication conveyed. Bitcoin’s value has risen over 200% this year.

“I think the majority of these cryptocurrency [funds] are trying to ride the opportunity du jour,” noted Neal Berger, founder of investment advisory firm Eagle’s View Capital. “It’s an access point for people who can’t buy it themselves or don’t want to learn how to do it.” Former Goldman Sachs executive Matthew Goetz, co-founder at Blocktower Capital, described:

It’s a wildly inefficient market where alpha potential is abundant — more than anything we’ve seen in our careers. We think it’s a rare opportunity for investors. It’s not often there’s a new capital market being born in front of you.

How do you think the many hedge funds entering the space will affect the price of bitcoin? Let us know in the comments section below.

Images courtesy of Shutterstock

Need to calculate your bitcoin holdings? Check our tools section.

The post Hedge Funds Investing in Cryptocurrencies ‘Exploding’ – 62 in Pipeline appeared first on Bitcoin News.

from Bitcoin News http://ift.tt/2wAUngh http://ift.tt/1L2dnrU

Latest from the Blog

This Week in Bitcoin: McAfee’s Bullish Prediction and a Guy Living in His Car
with No Comments

This week we learned that Deutsche Börse “Deep at Work” on Bitcoin and John McAfee predicted bulls’ billions will soon be pumped by institutional investors, despite the current cool market. These stories and many more were covered in this week’s daily … Read More

ZombieChain Comes Alive: Can Ethereum Sidechains Save the Dapps?
with No Comments

Loom Network, which came up with the idea of dedicated “dappchains” for scalable decentralized apps, is embracing sharing. from CoinDesk https://ift.tt/2sefVQf https://ift.tt/1kITr2E

GDPR and Blockchain: Is the New EU Data Protection Regulation a Threat or an Incentive?
with No Comments

Could the new European data protection regulation (GDPR) become a threat to blockchain? https://ift.tt/2alQVjr

Despite 2018 Bear Trend, Top Ten Crypto Markets of 2017 Gain Average of 170% in 12 Months
with No Comments

In our latest historic snapshot analysis, we look at the performance of the top ten cryptocurrency markets since May 28th, 2017. Despite suffering heavy losses during 2018, the average price gain of the top ten markets has been 170% when … Read More

Leadership Shifts to Usher in New Era for Monero Cryptocurrency
with No Comments

New leaders with ambitious business strategies are on the rise within monero, seeking “usability for ordinary people.” from CoinDesk https://ift.tt/2GUYoB8 https://ift.tt/1kITr2E

Qualcomm to meet China regulators in push to clear $44 billion NXP deal: sources
with No Comments

BEIJING (Reuters) – Qualcomm Inc is expecting to meet this week in Beijing with China’s antitrust regulators in a final push to secure clearance for its proposed $44 billion acquisition of NXP Semiconductors NV , three sources told Reuters. from … Read More

Bitgrail Exchange Ordered Down Indefinitely as Italian Court Upholds Halt
with No Comments

Earlier this month, Bitgrail’s principal Franceso Firano attempted to reopen the Italian cryptocurrency exchange after $170 million in losses and during their legal sorting out. An inside job or software hack, that hasn’t had an official determination, and fingers are … Read More

Cyclone shuts Sembcorp Salalah water production plant
with No Comments

DUBAI (Reuters) – Sembcorp Salalah Water and Power Co , which operates an electricity generation and seawater desalination plant in Oman, said its water production plant had been temporarily shut down because of rough seas as a result of a … Read More

Tencent chairman pledges to advance China chip industry after ZTE ‘wake-up’ call: reports
with No Comments

HONG KONG (Reuters) – Tencent Holdings chairman pledged to advance China’s semiconductor industry, saying the blow to ZTE Corp from Washington’s ban on U.S. firms supplying telecommunications company was a “wake-up” call, local media reported. from Reuters: Business News https://ift.tt/2siexuW … Read More

There’s a Bitcoin Themed Card Game On Kickstarter Called ‘Bitcon’
with No Comments

There’s a new card game called ‘Bitcon’ that’s been introduced on Kickstarter that allows people to experience the cryptocurrency investment fever for amusement and laughs. The strategy game was created by two cryptocurrency investors who were tired of hearing about … Read More

Daimler faces scrutiny of 120,000 Vito, C-Class diesels: BamS
with No Comments

FRANKFURT (Reuters) – Daimler faces an investigation of 40,000 diesel Vito vans and 80,000 C-Class model cars for possible illicit software that allowed the vehicles to emit excess pollution without detection, Bild am Sonntag reported, citing no sources. from Reuters: … Read More

Project to Build Satoshi Statue Gains Support in Kiev
with No Comments

An initiative to erect a monument of Satoshi Nakamoto in Ukraine’s capital is gaining momentum and support. The idea is to place the statue right where the red Karelian stone figure of Lenin used to stand, before it was taken … Read More

SEC, CFTC, IRS And Others: A Guide To US Regulating Bodies
with No Comments

A guide to the complex crypto regulation framework in the US: Here’s how SEC, CFTC, FinCen and IRS view Bitcoin https://ift.tt/2alQVjr

Six Japanese Public Companies Plan to Launch Crypto Exchanges
with No Comments

This week, a number of companies listed on the Tokyo Stock Exchange revealed their plans to enter the crypto exchange business. They include one of the most popular budget-managing app operators, an entertainment conglomerate, one of the largest music labels, … Read More

South African Police Investigate Alleged Crypto Ponzi-Scheme Involving 28,000 Investors
with No Comments

South African Police are investigating an alleged crypto investment fraud in which 28,000 investors are said to have lost over $80 mln https://ift.tt/2alQVjr

331 High-Income Traders Declared Crypto Profits in Japan
with No Comments

The Japanese tax authority has for the first time revealed the number of high-income taxpayers who declared cryptocurrency profits in the year 2017. Out of the total number of taxpayers with miscellaneous income of 100 million yen or more, excluding … Read More

Oil output could return to October 2016 level, says Russia’s Novak
with No Comments

MOSCOW (Reuters) – A return to the oil production levels that were in place in October 2016, baseline for the current deal to cut output, is one of the options for easing curbs, Russia’s energy minister said on Saturday. from … Read More

Bchpls.io Enables Free Bitcoin Cash Point-of-Sale Platform
with No Comments

There’s a new Point-of-Sale (PoS) service the Bitcoin Cash community has been talking about called, Bchpls.io, an app that enables any brick n’ mortar merchant to accept BCH with just two devices by providing a customer screen, and a cashier … Read More