Trading cryptocurrencies has shown itself to be quite a lucrative business, at the same time the exchanges where trading occurs underscores how risky trading might be; exchanges can lack basics controls on know your customer (KYC), fraud prevention and more; there have also been a number of significant thefts or hacks where millions were lost; while the risk is real it has now slowed the market's growth as total value of all digital currencies has soared to over $140bn. Source.
According to UK research firm Autonomous NEXT there are now 68 crypto hedge funds which is a significant jump since the start of the year; while calling themselves hedge funds many of these new entities are not structured like a typical hedge fund and they don't have institutional backing; as the interest in cryptocurrencies grows, the market will continue seeing new entrants trying to capitalize on the rising value. Source.
The recent regulatory crackdown on cryptocurrency markets, specifically in China, has dropped the worldwide market cap to $98.95bn; as recently as two weeks ago the market cap was up around $180bn; while the size of the market continues to fluctuate, it remains to be seen where prices will head when regulatory crackdowns pass. Source.
Fred Wilson is urging investors to diversify their bitcoin assets before the crash comes; while he does not offer a timeframe for when this might occur he does think diversification will protect those who are heavily invested; he is a believer in the crypto markets in general and thinks they add value to a portfolio. Source.
Until now little has been known about the hedge fund that invests in cryptocurrencies; it is backed by big names including Andreessen Horowitz, Sequoia Capital, Union Square Ventures, Founders Fund and Bessemer Venture Partners; the firm owns about a dozen cryptocurrencies, taking a value investing approach; Fortune shares more details about how the fund operates and the eye popping returns the fund has returned to date. Source
Hu Liang, former director at State Street Bank and Trust's Emerging Technologies Center, tells CoinDesk he is building "the first large-scale institutional infrastructure specifically targeted towards crypto assets"; the company will be an infrastructure platform to provide software and hardware to connect with institutional order and execution management systems; he is looking to eliminate large buyers of cryptocurrencies having to create on the fly technology solutions to make their orders; Liang tells CoinDesk, "I am building a traditional financial services application that can serve the needs of anybody looking to be involved in crypto assets, whether that's holding it for the long term, whether that's trading it for the short term, whether that's transforming it or using it for a rail for something else." Source
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