Cryptocurrency hedge fund Tyr Capital is tapping into growing investor appetite for digital assets with the launch of a new long-only fund next year, after its main multi-strategy vehicle increased assets and scored double-digit returns this year.
After a rocky September and the crypto price crash wiping out hundreds of billions of dollars from the entire market, digital currencies quickly bounced back, driving the global crypto market cap to new record highs.
As hedge funds continue to ride out cryptocurrencies’ volatility, new industry research suggests larger institutional investors remain reluctant to pile into digital assets in any meaningful sense, despite the strong returns generated by managers this year.
As bitcoin surged towards a two-month high on Monday (26 July), digital assets-focused investment manager Wave Financial is bullish on the cryptocurrency’s future prospects amid the ongoing institutionalisation of the sector.
Argentium Digital Asset Management, a London-based cryptocurrency hedge fund founded by ex-JP Morgan and Credit Suisse manager Paul Frost-Smith, has committed to a carbon-neutral investment approach.
Bitcoin latinum, the next-generation insured bitcoin fork capable of massive transaction volume, digital asset management, cyber security, and capacity has announced a green initiative to achieve a carbon net-zero footprint, as a commitment to sustainable environmental practices and support of the Crypto Climate Accord.
Well-known hedge fund bear Russell Clark is questioning how valuable bitcoin is under the stock-to-flow model, a framework traditionally used for precious metals such as gold and platinum, in light of recent sharp price volatility.
Digital investment specialist firm Osprey Funds, has seen interest from hedge fund managers in its bitcoin trust, OBTC, which was launched last year, and now has assets of USD160 million.
The soaring price of bitcoin is putting the world’s foremost cryptocurrency on a direct collision course with ESG-focused investments, as allocators increasingly want portfolios to be managed responsibly, says Robert Furdak, chief investment officer for ESG at Man Group.
New data released by Trading Platforms indicates that it costs USDF25.2 million per day in electricity to process bitcoin transactions. The consumption cost is based on bitcoin’s 30-day average transaction of 328,418 as of 17 January, 2021, and the energy footprint per 1 BTC transaction confirmation of 612 kWh equivalent to USD76.74.