Crypto Hedge Funds See Strong Investment Demand, Still Raising Hundreds of Millions During Bear Market
In just 2018 the crypto market has been able to lose about 75% of its valuation. While all this is happening, the crypto hedge funds have been able to raise millions of dollars from the accredited institutions and investors.
CNN went ahead to report on 1 November that the Grayscale investment was able to raise about $330 million, this is from the existing and the new investors in the platform. Grayscale Investments is a subsidiary company to Digital Currency Group which is a venture capital behemoth.
In 2017 the company was able to raise about 1,200 percent increase in the amount that the firm was able to raise across three quarters. The managing director of the Grayscale Investment, Michael Sonnenshein, went ahead to state that the 69 percent drop of the Bitcoin price had a very small impact on the client base of the company.
He went to say that the Bitcoin prices did nothing much but just go down the whole year, the good thing this did not deter the company’s current client base, thus they still had the needed capital base to keep the company working. The asset inflows remain strong, despite the price declines that were witnessed in the market.
He also stated that the investors are taking a small pullback as their opportunity to increase the needed exposure. Making it clear that the price fluctuations did not slow down the pace investors had; instead, it has led to the development of a broader relationship.
It Is Not Just The Grayscale Company
Grayscale was established as a public tradable instrument provider for either Ethereum, Bitcoin, Zcash and Ethereum Classic, platforms that have been able to allow the different investors in the market the ability to invest in the crypto market. The company has been able to gain a strong reputation in the market as both an investment firm and a digital asset manager.
In the last couple of months, several asset management firms have been able to raise over $100 million that can be used in the investment of asset class. It is the likes of Pantera Capital and even the former Point72 portfolio manager called Travis Kling who founded the Ikigai Asset Management.
Within 11 months the crypto market has been able to fall by a significant margin, but with the correction of the market has led to many investors to explore the long-term opportunity that the asset class is to offer. In the past ten years, the crypto market has been able to see four major market price correction, having all of them recording over 80% in the coin valuation.
As Travis Kling had emphasized, the crypto market is clearly still at the start of its exponential growth, and with the correction that happens is a viable opportunity for more investors to enter the market. He goes on to state that he firmly believes the crypto market will be able to make trillions of dollars.
The Pantera Capital in August was able to raise about $100 million, and they are aiming to raise $75 million to help in establishing a venture capital-style fund that will assist in the investments of crypto startups. The $100 million fund of the Pantera was able to attract over 140 investors. All this is for a 10-year long vision term that will help in the investment of the crypto industry.
The Growth In The Market Is Very Strong
It is clear that the crypto market is still very robust and strong, and 2018 is a good evidence of this as it is a rapidly growing industry. Thus, making it clear that all this is not just a fad, but rather a new emerging technology that is making changes to the market that is being able to compete with the current centralized system.