Positive Signs For Cryptos As Investor Raise Millions In Fundings
Investors are also showing interest in startups that are not yet established.
Why Investors Are Choosing Hedge Funds To Enter Crypto World
The United States Cryptocurrency sector has recently witnessed crypto hedge funds worth $100 million. The fund was supported by major institutions and wealthy individuals.
The $100 million funds were revealed by Reality, Travis Kling and JCE Capital Management. The fund will be entirely focused on cryptocurrencies. Kling is a former top official from Point72.
In the recent days, Alexander Pack and Ceyuan announced that they had set up a $100 million fund. The project was dubbed Dragonfly Capital Partners. It seeks to build a wide base of crypto initial funds and structures for setting to startups. Pack was a former partner at Bain Capital while Ceyuan is the proprietor of Bo Feng.
According to Pack, his firm seeks to pump money into startups that show a significant vision of changing different firms under blockchain but with operations outside the financial sector.
In the past, many industry players were faced with numerous cryptographic challenges and blockchain is coming out to solve this issues in an effective manner with the aim of improving capacity under the system.
The $100 million in Dragonfly has a number of implications. This is a clear indication that investors are willing to take risks and put their money in cryptocurrencies. Their investments come at a phase when we have a lot of uncertainties over the general course of the industry.
About two months ago, Grayscale raised over $250 million by June this year from investors. The investors were drawn from the traditional financial industry. The news came as a surprise because the crypto market was experiencing devaluation. According to Grayscale, there was a spike in demand for the firm’s hedge fund.
In a statement, Grayscale termed the amount raised as interesting. The team stated that the sale of acceleration had not been witnessed before. The amount raised was one of the strongest inflows raised in a span of six months in the history of cryptocurrencies.
It is evident that the cryptomarket is still lying in the shadow of the bear market. At the moment, top cryptos are showing signs of recovery. However, investors are putting their money in startups. Generally, startup investment is a risky affair since they are not established. Investors find hedge funds to be more profitable.