Crypto hedge funds and venture capital firmsĪs crypto hedge funds and institutional cryptocurrency investment firms typically invest a big chunk of funds in coins and token – much higher than an average retail investor – they possess high liquidity in an asset. Other cryptocurrency hedge funds have been investing in equities, fixed income, foreign currencies and commodities. Many crypto hedge fund companies are solely focused on investing in digital assets. They have more leeway to pursue high-risk investments and strategies by using leverage, short-selling and other speculative financial instruments.
The SEC added that hedge funds are not regulated as heavily as mutual funds. Moreover, participation in hedge fund investing also demands a high minimum deposit. Hedge funds are typically limited to wealthier investors who can afford higher management fees and the risks of hedge-fund investing.
In 2022, a report by PricewaterhouseCoopers revealed that more than a third of traditional hedge funds were investing in cryptocurrencies, highlighting the growing acceptance of crypto as an alternative asset class.Īs a result, it is worth taking a look at some of the most notable crypto hedge funds and companies seeking to crossover between traditional and blockchain-based finance.Īccording to the US Securities and Exchange Commission ( SEC), hedge funds are investment vehicles that pool money from various investors with the goal of getting positive returns. Crypto hedge funds: Who are the most influential firms investing in crypto? Photo: Gorodenkoff /
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