2019 has been largely considered as a breakthrough year for the cryptocurrency market, largely because it was poles apart from the bearish crypto-winter that preceded it. Investors are flocking into the industry, with the virtual asset ecosystem starting to gain attention from financial institutes. At press time, it was being reported that a major management firm backed by a billionaire was looking to take advantage of the recent revival in crypto with a $1 billion investment.
According to ft.com, Elwood Asset Management, a crypto-firm led by Alan Howard, is currently working towards the development of an organization that would provide assistance to create portfolios of virtual asset funds for institutional investors in the sector.
Bin Ren, Chief Executive Officer of Elwood Asset Management, stated that the objective of this brand new venture is to create a platform which would allow a specific group of investors to operate with quality crypto hedge funds that would be free off massive vulnerabilities usually associated with crypto.
Ren stated,
“Losing traditional assets in the real world is hard. In the digital world, it’s very easy to lose assets — put in the wrong address for a bitcoin transfer and it’s gone forever.”
The crypto-industry is receiving massive interest from the hedge fund community since the end of July, and it has been observed that interest has risen by almost 60 percent. During 2017’s bull run, hedge funds have profited by more than 2900 percent on average in the short term, but during the crypto-winter of 2018, growth fell by 70 percent.
The functionality and operations of the platform are not set in stone yet. However, it has been indicated that the platform would enable its investors to set their own risk levels, expected returns, terms of market liquidity and estimation of concurrence with other assets they possess.
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