Californian Asset Management Firm Reality Shares to Launch $100 Million Crypto Hedge Fund
Reality Shares, the asset management firm based in California, is reportedly launching a $100 million cryptocurrency hedge fund according to Business Insider. Reality Shares has suggested the crypto hedge fund will be comprised of a mix of strategies such as arbitrage, venture capital and directional initiatives to obtain $25 million for the fund. A portion of the fund will be used directly to buy and sell crypto.
In June 2018, the company developed the first blockchain based exchange-traded fund (ETF) in China, the Reality Shares Nasdaq NextGen Economy China ETF (BCNA) which will back blockchain companies based in China. This ETF will monitor long-term growth, tracking investment returns as well as fees and expenses of the Reality Shares Nasdaq Blockchain China Index; which is comprised of blockchain companies situated in China and Hong Kong.
According to reports conducted by Crypto Fund Research before 2014, 88 crypto funds had been launched: 32 in 2014, 30 in 2015, 42 in 2016 and 156 crypto funds launched in 2017. This year has seen 96 cryptocurrency funds launched with a projection of 165 by the end of the year. This is an increase year on year suggesting more money is entering the market. More investment can increase the price of bitcoin and other cryptos; causing people to both buy and sell cryptocurrency.
Bitcoin is still in an earlier stage of venture causing major fluctuations to its price. Many investors are hesitant to invest in cryptocurrency due to the volatile nature. Many regulations are still to be implemented before major investment enters with regulators taking a relaxed approach so as to not stifle innovation.
We are still seeing new investment enter the market everyday with many more projects planned. These venture funds will bring in new capital potentially instigating more trades or people to cash out crypto.
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