Since the start of 2018, Ifina has been receiving enquiries almost daily from cryptocurrency traders and managers that want to start a “crypto fund”.
Despite the volatility of cryptocurrency prices in recent years – investment fund managers with a long-term mindset are taking advantage of good buying positions.
Changing Attitudes
The major fund jurisdictions and regulators previously outlawed cryptocurrencies. They would not entertain the normalisation of cryptocurrencies as an asset class.
This is now changing, with several EU jurisdictions not only embracing blockchain technology, but also normalising the digital currencies as an asset class.
Malta, Gibraltar and Switzerland are encouraging banking and asset management institutions to be open-minded towards cryptocurrencies.
Investment Strategies
When it comes to creating ‘crypto funds’, there are a variety of strategies. Some funds are replicating the cryptocurrency benchmark indices, such as the benchmark CCi30 index. Others are concentrating on ICO issues.
Meanwhile, some are looking at crypto-mining, either by providing funding to mining operations or providing venture capital for equity interests. Others adopt a multi-strategy approach.
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Do you need help creating your own crypto fund? We should have a Skype call. Just email me back and we can book a time that’s convenient to you.