![]() Pantera Capital: First US crypto hedge fund ![]() On 7 December 2022, Bloomberg reported that Fir Tree Capital was suing Grayscale over “potential mismanagement and conflicts of interest” at its flagship Grayscale Bitcoin Trust fund.įurthermore, DCG unit Genesis Global Trading suspended withdrawals and new loan originations at its lending business in November 2022 following “abnormal withdrawal requests” that exceeded the firm’s current liquidity. In January 2023, Silbert wrote to investors defending his record after calls for his sacking. Lately, DCG has seen intense stress on the back of a crypto contagion following the collapse of layer-one Terra’s ecosystem and the bankruptcy of the FTX exchange. The bearish mood in the market has also caused the Grayscale Bitcoin Trust to trade at more than a 40% discount to its underlying bitcoin value. Some of DCG’s other investments include bitcoin security platform BitGo, web browser Brave, blockchain analysis firm Chainalysis, stablecoin issuer Circle, crypto exchanges Coinbase ( COIN), Kraken and FTX, Ethereum explorer Etherscan, Bitcoin scaling solution Lightning Network, non-fungible token ( NFT) company Dapper Labs and payment-focused blockchain network Ripple ( XRP). ![]() DCG’s core cryptocurrency holdings consist of BTC, ETH, ETC, MANA and LAND, FIL, ZEN, LPT and ZEC. As of 8 December 2022, DCG-owned Grayscale had a total AUM worth about $14.98bn in cryptocurrency-based investment products.Īccording to DCG’s website, the company supports the development of blockchain networks by investing in digital currencies and participating in select token sales. Investors can put their money in Grayscale’s crypto funds such as the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE) and Grayscale Smart Contract Platform Ex-Ethereum Fund via private placements or publicly-quoted products. HQ, DCG’s life and wealth management arm, offers services such as private investments, wealth advisory and tax, trust and estate planning. The company offers investors single assets and diversified cryptocurrency funds via Grayscale Investments. The company, one of the most active investment firms in the blockchain sector, was formed in 2015 by Barry Silbert after he sold his first company, SecondMarket Solution, to Nasdaq ( NDAQ).ĭCG is not structured like a typical hedge fund. DCG: Grayscale and Coindesk parentĭigital Currency Group (DCG) is the parent company of the world’s largest digital asset manager, Grayscale Investments, cryptocurrency broker Genesis Global Trading and news agency CoinDesk. Some are venture capital firms that assert equal or more influence over cryptocurrency markets, like their hedge fund counterparts. It should be noted that not all the companies mentioned in this article are cryptocurrency hedge funds. This increases their influence on the price, which is why it’s important for retail investors to be aware of what institutional players are doing. 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 /
0 Comments
Leave a Reply. |