Reality shares – a Californian Asset Management firm – has launched its own crypto hedge fund. It initially made crypto headlines back in June when it launched its first Chinese blockchain ETF. The new crypto hedge fund will be capped at $100 million and will use a mix of strategies, with it already having attracted more than $25 million to the fund. Unfortunately, the crypto hedge fund market is a crowded space, with 466 other crypto hedge funds currently operating – 96 of those were created in 2018 alone. Volatility in the crypto markets has wiped around 67% off the value of Bitcoin since its all-time high in December, and markets are continuing to slide downwards. It appears only an American Bitcoin ETF can stop the bleeding during the short-term.
Bitcoin ETN Comes to the US
America is chomping at the bit for its own Bitcoin ETF, but the SEC keeps delaying its decisions, causing the price of Bitcoin to tumble significantly. Fortunately for American investors, a Swedish Bitcoin ETN has now been denominated in USD, meaning American trading platforms can now list the Bitcoin ETN. Investing in Bitcoin via ETNs and ETFs is becoming increasingly popular, especially for those who don’t have the sums of money required to invest in a hedge fund.
Bitcoin Should be Part of Your Portfolio
Aleh Tsyvinski – Economics Professor at Yale – recommends that Bitcoin should be a part of everyone’s investment portfolio, even if you don’t believe in it. He also recommends that it should make up at least 6% of a portfolio, but can be much more if desired. With the introduction of more crypto hedge funds and Bitcoin ETNs, this becomes increasingly more possible to do and requires investors to open less accounts at various exchanges. Tsyvinski’s research also leads him to believe that the risks versus rewards profile now outweighs traditional bonds and funds. This means that Bitcoin provides investors with a greater potential to make bigger returns than ever before – and the current low price presents a solid opportunity to buy.
New York Stock Exchange Owner Joins In
The owner of the New York Stock Exchange (NYSE) – Jeff Sprecher – has announced his desire to create a federally regulated crypto exchange. When it goes live it will be a cross between the Lightning Network and a digital Fort Knox. Sprecher has a long history of making products successful, and there is no doubt that this project will become a hit with institutional clients.
With increasing demand for alternative ways to invest in Bitcoin and other cryptos, companies like Reality shares will continue to create more products aimed at traditional and institutional investors. By providing an easy method for investors to get into the Bitcoin market, these funds are bridging the gap between modern crypto exchanges and the tried and tested stock exchange formula.