Bitcoin Hedge Funds Will Shape the Coming Market
The mining of bitcoin has come a long way from the earliest adopters. It used to be that bitcoin miners would spend a ton of money on new computers to stash in their house and mine as many as they could. It was an expensive hobby at the time – but those who stuck through the tough times are floating on a cloud today.
Today, bitcoin investment comes in the form of hedge funds. According to Wikipedia, a hedge fund is “an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques.”
For those adjusting to terms with the existing financial institutions via cryptocurrency investment, we can say that hedge funds are the most prominent investment structure used across the board to draw profit and minimize risk.
The popularity of bitcoin has given rise to some BTC hedge funds. CNBC reported back in October that over 90 funds devoted explicitly to digital assets formed in 2017. Suffice to say: they are worth taking a look at because they will shape the investment market.
3 Prominent Bitcoin Hedge Funds
Galaxy Investment Partners – Ex-Fortress executive Mike Novogratz recently launched a $500 million fund devoted to digital assets, which is the largest single fund of its kind. CrunchBase indicates they have made only two funding rounds since beginning operations, raising $2.7 million for Templum in a seed round and $4.3 million for NuCypher in a funding round. Novogratz was right about bitcoin hitting $10,000, and he will probably be right about where it will go next!
Pantera Bitcoin Fund – The New York Times did a feature on this fund, one of the earliest adopters of bitcoin that started out in 2013. The article focuses on the returns made for investors since the beginning of the fund: a gargantuan 25,004%. Returns made over the past year are at a more modest 1,900%, but with global adoption ramping up even more in 2018, investors can expect a similar growth going forward.
Miller Value Partners – Bill Miller has recently jumped into the bitcoin market, and people should take notice. The legendary trader known for vesting most of his fund in one or two companies has said he put 50% of his fund into bitcoin.
Are Hedge Funds Worth Investing in?
Hedge funds are worth taking a look at for all types of investors because the amount of investment capital at play has a direct impact on which companies succeed. The investment success of these funds was undeniable in 2017 and looks to only continue.
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