Make no mistake…
Now is the time to get involved with cryptocurrency funds. Ever heard of the ‘ground floor’? Well, that’s where we’re at in 2018.
But don’t just take my word for it.
Autonomous NEXT, the leading independent research provider on the financial sector, recorded a record high of 226 global funds focused on cryptocurrencies.
That’s up from 110 global funds as of October 2017.
Plus, the number of investment funds focused on trading cryptocurrencies more than doubled in the four months to February 2018.
This is despite the sharp falls in the value of the virtual coins.
Remember, Bitcoin hit a record high close to USD 20,000 in December 2017. It’s now trading at USD 6,100.
According to trade website Coinmarketcap, the market capitalisation of all virtual currencies has also suffered share falls. This is down from more than $830 billion in early January 2018.
Eurekahedge (an industry tracker) says that cryptocurrency funds lost an average of 4.6 per cent in January 2018.
However, these funds made an average of 1,477.85% in 2017.
Assets under management in the crypto fund space was between USD 3 billion and USD 5 billion according to Autonomous NEXT.
As an asset class, cryptocurrencies and their associated derivatives are the most exciting in the world. Ask yourself: what other asset is making returns of 100,000%?
The extraordinary volatility of cryptocurrencies offers investors tremendous opportunities, and this is one of the major reasons for the surge in the cryptocurrency funds.
Investing in cryptocurrencies can seem daunting to the individual investor, especially with the technological hurdles that digital assets present.
However, investing in a fund specialising in crypto investments – with managers that have the required expertise – is considered a trusted route.
The attractiveness of cryptocurrencies from a trading perspective is that the markets are very volatile. Plus, this asset class is uncorrelated to traditional assets.
Of course, this is likely to change over time as financial institutions and governments embrace and regulate cryptocurrencies.
In fact, this is one of the reasons why it’s crucial to get involved in crypto funds sooner rather than later.
There’ll come a day where making incredible returns from extreme volatility comes to an end.
So my advice is simple: if you’re serious don’t wait.
Here at IFINA, we’re seeing a competitive race to create crypto-related investment funds.
Specifically, we’re receiving significant crypto fund enquiries from interested parties. These enquiries are of a global nature – and reflect the popularity of cryptocurrencies.
Clients who have successfully traded digital assets on a personal basis for several years advise that they are receiving requests from friends, colleagues and associates to trade and manage crypto portfolios for them.
A Collective Investment Scheme (Fund structure) is considered the preferred route for crypto funds.
Although cryptocurrencies are essentially unregulated, the investment fund structure certainly is. If you’d like to start your own crypto fund, please reply to arrange a call.