In the world of investment funds, no asset class is changing as quickly as cryptocurrencies. As most investors know, the crypto market has levelled somewhat after the boom in late 2017.
At that point in time, many investors were keen to jump on the crypto bandwagon and ride the price rallies.
But here’s the inconvenient truth: cryptos have changed. Fast-forward to 2019 and the wild price volatility that defined cryptocurrencies for a period has stabilised.
Here at IFINA – we’re still seeing a high volume of investment fund managers looking to get into cryptocurrencies. This demand is no longer driven by those wild price swings. Instead, we’re seeing fund managers implement investment strategies that are utility focused, rather than speculative.
Here are some examples.
Many investment funds are now looking to place their capital into crypto mining businesses. Primarily, funds can do this through a private equity investment or by trade finance lending.
It’s also common for investment funds to look at Bitcoin lending as a strategy. Funds that have existing portfolios of Bitcoins can lend their coins and charge interest for doing so.
Bitcoin lending is another crypto strategy we have come across. Clients who already have a portfolio of Bitcoins which they intend to hold for the long-term can lend these through specialist platforms.
As governments and financial institutions look to regulate cryptocurrencies, the issue of crypto security will continue to increase in importance. Businesses that can provide credible crypto security solutions – such as private wallet services – are attracting the interest of fund managers.
If you’re considering setting up your own cryptocurrency investment fund, we should talk. We can offer solutions with a setup cost starting from $12,000 USD. Just email me and we can arrange a Skype call.