Crypto hedge funds: Who are the most influential firms investing in crypto?
People in the crypto world often talk about hedge funds and how they affect the market. These investors are a very important factor in crypto markets, but who are the most influential firms investing in crypto? We compiled a list of some of the better-known and more influential firms, with a brief description of their investment strategy.
1. Mintquant.com – Mintquant is a blockchain-focused hedge fund that was founded by Kim Philip, formerly GoDaddy executive and Ethereum developer. The firm focuses on making investments in high-potential technology firms, including cryptocurrencies. The firm has been around for about two years and has made investments in over 25 projects so far using sophisticated investment strategies such as ARBITRAGE STRATEGY, FEAR, AND GREED SENTIMENT INDEX STRATEGY, Pre-News effect trading strategy, Yield farming & trend investing, etc.
2. ARK Invest – ARK invest is an investor-focused firm that specializes in disruptive technologies like blockchain and cryptocurrencies. The company was founded by two former Goldman Sachs employees and has been around for about 20 years now, also invested in other disruptive technologies such as electric cars and solar power alongside blockchain projects like Ethereum (ETH).
3. Pantera Capital – Pantera Capital was founded by Joey Krug, who also runs the company’s cryptocurrency investment arm, Centra. The company focuses on large cryptocurrencies like Bitcoin (BTC). In short, the investment firm looks for coins that have done well in the past and are likely to do well again in the future.
4. Fundstrat – This fund is focused on cryptocurrencies and applies the same techniques used in traditional financial markets to their research into the future state of digital assets. Founded by Tom Lee, a former Goldman vice president, and research analyst at Credit Suisse, the firm takes a long-term view on cryptocurrencies by the year-end of 2020.
5. MetaStable – This firm is involved in Japan’s Japanese-developed blockchain, NEO (NEO). The company has over $80 million in investments across its portfolio. The company believes that, with NEO’s smart contract platform, there are huge opportunities for funds to be deployed through the platform. NEO is a popular cryptocurrency among investors with a market cap of $3.92 billion.
6. KCG – KCG has been active in the world of blockchain since 2013 and its focus on is on digital currencies such as Ethereum (ETH). The company was founded by Yaron Golgher, who serves as the firm’s CEO and CIO. The firm also invests in start-ups, primarily those that are involved in the digital currency ecosystem.
7. Galaxy Digital Asset Fund – This fund is focused on investments similar to traditional hedge funds, but for cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Note that cryptocurrencies are extremely volatile assets. Hedge fund managers and investment firms can make wrong decisions leading to the loss of money. Their opinions and actions shouldn’t be used as substitutes for your own research.
Always conduct your own due diligence. Remember that your decision to trade or invest should depend on your risk tolerance, expertise in the market, portfolio size, and goals. Keep in mind that past performance doesn’t guarantee future returns. And never invest or trade money you cannot afford to lose.