Presently, an asset management firm that deals with the crypto resources of Alan Howard, billionaire trader, is working on a cryptocurrency hedge fund platform that might reach 1 billion dollars in assets, as reported by the Financial Times. The platform built by London-based Elwood Asset Management will design portfolios for crypto investors, directing them through crypto’s tricky waters by pointing out the right crypto hedge funds for investment.
As indicated by Financial Times report, Bin Ren, Elwood’s CEO described the venture that will enable speculators to pick quality assets, and it considers this to be as a “very big growth opportunity.” Moreover, the details of the anonymous cryptocurrency venture are yet to be finalized, but the Financial Times report proposes that it will help institutional financial investors by way of designing a portfolio of cryptocurrency fund for them. Investors should pick one with several factors offered, including anticipated returns.
Moreover, Elwood’s system would request investors to enter their proposed returns, risk, and amount of liquidity, and shows a customized portfolio. The platform is built on Elwood’s past work in the space. Earlier in March, Elwood introduced the Elwood Blockchain Global Equity Index. Further, the index, which is determined by Solactive AG, the index provider, promote investment in both crypto and blockchain ventures.
Meanwhile, the details of the product are yet to be accomplished. The new reserve could empower investors to decide input factors, like the degree of risk they are willing to accept, their expectations on their returns, and the liquidity terms. It will measure the potential association of the custom made crypto hedge fund portfolio with the rest of their current resources. For its services, Elwood will apply its very own fees over the charges that investors pay to access the primary funds.
When several cryptocurrency hedge funds improved this year, financial specialists are allegedly careful about some of the resources which are high-risk tokens as a part of their portfolios. Bin Ren, Elwood Asset Management CEO told the FT that the project would plan to direct financial specialists towards a choice of vetted crypto reserves that have passed vigorous due diligence so that investors can avoid risks related with the developing sector.
As per Financial Times, Elwood’s offered to explore institutional customers through the new venture by an acknowledgment that few crypto investment vehicles still do not have the traditional features related to the conventional hedge fund industry. Earlier this March, Elwood had demonstrated that it intended to expand its cryptocurrency contributions as it declared the launch of a blockchain exchange-traded reserve, in association with Invesco.