Cryptocurrency hedge funds are increasingly gaining ground. These funds invest in cryptoassets and blockchain startups. Transfero itself launched its hedge funds last year. Given this scenario, the investment news site ValueWalk released a ranking of the ten largest crypto hedge funds in the world. The ranking is based on data from Crypto Fund Research, official funds websites and other sources. Here are they:
Founded by Jeff Nabers and Ryan Ballman, CoinCapital is a hedge fund focused on cryptocurrencies, ICOs and blockchain startups. Individual investors with a net worth of at least US$ 2.1 million can invest in the hedge fund.
9- Multicoin Capital
Multicoin is a US$ 100 million crypto hedge fund that uses long and short strategies with at least 11 cryptoassets to deliver profitability. The fund also invests in crypto startups, having been one of Binance’s investors.
Founded by Cedric Jeanson in 2014, the BitSpread is a crypto hedge fund whose profitability comes from cryptocurrency trading. On average, BitSpread performs more than 5,000 transactions per day, trading about US$ 1 billion in cryptocurrencies every month. It has more than US$ 100 million in assets.
7- BlockTower Capital
Among the largest crypto hedge funds in the world, BlockTower Capital was founded by the former Goldman Sachs’ executive Matthew Goetz in 2017. According to CryptoFundList, the asset manager has at least US$ 150 million in assets. The hedge fund attracted funding from venture capital heavyweights such as Union Square Ventures and Andreessen Horowitz. BlockTower focuses on thematic investments and event-based trading strategies.
6- Altana Digital Currency Fund
ADCF is a cryptocurrency hedge fund with active management. Founded in May 2014, it was Europe’s first crypto fund. The fund claims to have returned more than 1,400% net fees in the last five years. It also uses long and short strategies to deliver payoffs and is estimated to have US$ 450 million under management.
5- Galaxy Digital Assets
Founded by Michael Novogratz, the Galaxy Digital Assets Fund in New York was launched in 2018. The fund invests in cryptocurrencies, ICOs and related companies. According to CryptoFundList, it was launched with US$ 500 million in assets.
Headquartered in the Cayman Islands, the Alphabit Fund is a hybrid between a hedge fund and an mutual open fund. It was launched with only US$ 1 million in start-up capital and currently has more than US$ 500 million in assets under its management. The fund aims to overcome the price of the bitcoin and generate lower volatility.
3- Polychain Capital
Olaf Carlson-Wee, former head of credit risk at Coinbase, founded the Polychain Capital in 2016. This hedge fund raised funds from Andreessen Horowitz and Sequoia Capital. At the end of June 2019, it had US$ 967 million in assets under its management, according to Crypto Fund Research. The multi-strategy hedge fund invests only in cryptocurrencies, not in companies.
2- Pantera Capital
Pantera Capital was launched in 2003 as a traditional investment fund. It has shifted his focus to cryptocurrencies in 2013 with the launching of the Pantera Bitcoin Fund. The multi-strategy hedge fund has an estimated value of US$ 810 million in assets, according to CryptoFundList. Pantera invests in cryptocurrencies, ICOs and blockchain startups.
Grayscale Investments is a subsidiary of the Digital Currency Group of New York. According to CoinTelegraph, it had US$ 2.7 billion in assets in 2019. The hedge fund invests in a wide range of digital assets, including bitcoin, ethereum, litecoin, ripple and blockchain companies. Grayscale has already invested in several crypto companies, including eToro, Circle, Ledger, Shapeshift and others.
Transfero has three hedge funds
Transfero Swiss is the manager of three cryptocurrency investment funds, aimed at institutional clients and professional investors. The Advanced uses mathematical and statistical models that identify trends to achieve income above the cryptocurrency market. The Counter Cyclical, a passive fund that invests 75% in gold and 25% in bitcoin, aims to protect assets in the face of crises. The Conservative combines physical arbitrage and quantitative strategies to obtain return. Transfero’s funds stand out among Brazilian asset managers.