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Blockchain ETF Provider Will Launch a $100 Million Crypto Hedge Fund: Report


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Reality Shares, an asset management firm based in California, will be launching a $100 million multi-strategy crypto hedge fund, a source told Business Insider.

According to the company insider, the crypto fund will be “a mix of arbitrage, venture, and directional strategies.” Reality Shares has already obtained $25 million for the fund, the source said.

The company also launched the first ever Chinese blockchain based exchange-traded fund (ETF) in June 2018. The Reality Shares Nasdaq NextGen Economy ETF (BCLN) focuses on investing in global blockchain companies while Reality Shares Nasdaq NexGen Economy China ETF (BCNA) backs blockchain companies based in China.

According to Crypto Fund Research, a total of 466 funds currently exist in the cryptocurrency industry. Eighty-eight of these funds were launched before 2014, 32 funds in 2014, 30 funds in 2015, 42 funds in 2016 and 156 funds in 2017. So far, 96 crypto funds have been launched this year; however, it is expected that we will see 165 funds by the end of 2018.

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Source: Autonomous Next

Reality Shares joins the ranks of 75 other crypto funds that are capped between $5 million to $100 million. Only 28 crypto funds have crossed $100 million mark. Andreessen Horowitz is one such firm, which announced its $300 million crypto fund in June 2018.

Earlier today, internet company Line Corporation also announced that the company’s subsidiary, Unblock Ventures, is launching a $10 million crypto fund.

Volatility in cryptocurrency prices continues to perplex investors but these numbers indicate that people are still interested in the cryptocurrency market. Dan Morehead, CEO of Pantera Capital, asked people who are worried about Bitcoin’s price to stop overreacting. He also explained, “The main thing to remember is that bitcoin is very early-stage venture, but has real-time price feed — and that’s a unique thing. People get excited about the price and overreact.”

However, not every investor is sold on cryptocurrencies. According to a survey by Context Capital Partners LP, a majority of the 400 institutional investors polled said they are unsure about cryptocurrencies. Half of them consider cryptocurrencies as an asset class while the other half consider them a fraud.

Overall, blockchain has attracted more investors since regulators are more relaxed towards this technology. Earlier this month, KPMG published a report which showed that, in the U.S., blockchain investment in 2018 has already surpassed total blockchain investment in 2017.

In fact, Kim Dong-yeon, South Korea’s finance minister, announced today that the government has set aside $4.4 billion for an investment program which focuses on blockchain and nine other burgeoning tech sectors.

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