Getting rich is the desire of a lot of people. And having the equity multiplied by 5x, 6x in a five-year period can make someone rich. In the cryptocurrencies market, the crypto hedge funds can be a way to reach that goal. By definition, they seek to overcome the market in general and are an investment alternative.
The PwC estimates that there are 150 crypto hedge funds, managing a total of US$ 1 billion. In 2018, with the market in decline, the average performance of these funds was -46%, against a fall of 72% of the bitcoin.
There are three types of crypto investment funds:
- Fundamental: Funds that only operate purchased, focused on longer investment horizons. These are funds that often invest in the early stages of tokens. And also in the buy and hold of more liquid cryptoassets.
- Discretionaries: They cover long and short strategies, that is, they operate both bought and sold. And also statistical analysis, active management and strategies such as widespread mining. They generally have hybrid investment strategies
- Quantitative: They adopt a quantitative approach to the market in both directional and neutral ways. Strategies include arbitrage, market making, and low-latency trading.
Without further delays, let´s go to the main crypto hedge funds to get rich:
Grayscale is a subsidiary of Digital Currency Group that invests directly in cryptocurrencies and digital assets. The company had in the second quarter of this year assets under management (AuM) in the amount of US$ 2.7 billion. This number was 300% higher in relation to the first trimester.
Most of the demand is made of institutional investors – 84% of the customer base. The company has investment products of only one asset – like its bitcoin Trust – or diversified.
This crypto hedge fund has partnered with venture investors outside the crypto market. In 2017, it closed a round of financing of US$ 200 million in which Sequoia Capital, Andreessen Horowitz and Union Square Ventures participated. Therefore, it is both a product of traditional finances and the new cryptocurrency ecosystem.
Data from Crypto Fund Research reveal that, in June 2019, it has US$ 967 million in cryptocurrencies under management. In addition, it invests in blockchain startups, including Coinbase, Kik, Celo and dYdX.
The Pantera Capital was once a traditional investment fund, but in 2013 it changed its focus to cryptocurrencies and blockchain. It has assets under management ranging from US$ 335 million to US$ 724 million.
In addition, it has invested a considerable amount in 72 startups and crypto projects. It is estimated that they have raised at least US$ 200 million in total external venture capital to finance these investments. Similarly to the Polychain Captal, Pantera Capital has partnerships with companies outside the crypto market.
Launched in New York in 2018, it has US$ 393.3 million under management. In addition to the investments in cryptocurrencies, the fund invests in other correlated projects such as Bakkt, BlockFi, Ripple, Block. One, BitFury, BitGo and Bitstamp. It also has support from companies that do not belong to the crypto market.
Although it focuses primarily on companies outside the cryptocurrency sector, Andreessen Horowitz has a crypto fund called a16z. The fund has US$ 350 million under management. However, in total, the Andreessen Horowitz manages US$ 7 billion, including traditional assets.
Andreesseen Horowitz and a16z also invested in several cryptocurrency startups, including Coinbase, Maker, Filecoin, dYdX and CryptoKitties. For instance, in August 2018, the fund, along with Polychain Capital, invested US$ 105 million in the Dfinity blockchain-based cloud startup.
Transfero’s investment strategies
Transfero Swiss has investment strategies also aimed at outperforming the digital assets market. The wallets TSAG Conservative, TSAG Advanced and TSAG Libra are the three main strategies of the company. Contact us and talk to one of our consultants.