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Northern Trust Is Helping Hedge Funds Invest in Cryptocurrencies

U.S.-based custody bank Northern Trust is helping traditional “mainstream” hedge funds expand into cryptocurrencies, Forbes reported Tuesday.

Northern Trust’s president, Pete Cherecwich, told the news organization that the financial services firm is working with three hedge funds – whose names he declined to provide – to add cryptocurrency investments to their portfolios.

To that end, Northern Trust has reportedly created new administrative tools and services specifically for cryptocurrency assets. These include tools to price and trade cryptocurrencies, according to the report.

Cherecwich said:

“You can take anything today. You can take movie rights, you can take all sorts of entities, and you can create a token for those. We have to be able to figure out how to hold those tokens, value those tokens, do those things.”

Ultimately, he said, he believes governments will digitize currencies on a blockchain. As such, many of Northern Trust’s efforts to integrate blockchain services are part of preparations for when fiat currencies are digital tokens.

The firm has been integrating blockchain services for over a year now. Most recently, the bank partnered with Big Four firm PriceWaterhouseCoopers to launch auditing technology for data stored on a blockchain. The project is aimed at streamlining audits by granting specific individuals a node on a bank’s private blockchain, allowing them to follow data as it is stored.

Northern Trust image via Steve Heap / Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Hedge Fund Billionaire Steven Cohen Is Getting into Crypto

Billionaire investor Steven Cohen, once dubbed the “Hedge Fund King,” has reportedly entered the crypto space.

According to a Fortune article published July 12, Cohen has invested in cryptocurrency-focused hedge fund Autonomous Partners through his VC firm Cohen Private Ventures.

Autonomous Partners was founded last December by Arianna Simpson, a venture capitalist with a history in the bitcoin space, including a time at bitcoin wallet startup BitGo. Her crypto fund has already secured investments from big names including Coinbase CEO Brian Armstrong, Union Square Ventures and Craft Ventures.

While the size of the new investment was not revealed, it’s not the first time Cohen Private Ventures has invested in Simpson’s projects. In 2015, her venture fund, Crystal Towers Capital, also received an investment from the firm.

Simpson told Fortune that Autonomous Partners is currently concentrated on smaller, “next generation” cryptocurrencies, though it invests to some extent in major cryptos like bitcoin and ether.

She also suggested that among blockchain’s many use cases, two were not in doubt:

“It’s still up in the air if people want to do a number of thing on the blockchain. We’re still figuring out what needs one and what doesn’t. But It’s clear they want to trade, and they want to play games.”

Her primary concern in the nascent space appeared to be regulation – a reason she will not touch XRP in case the U.S. Securities and Exchange Commission rules it a security.

“I think the whole space is still waiting for a bit more clarity,” she told the news source.

Cryptocurrency-focused hedge funds have rapidly grown in number over the last year as entrepreneurs move satisfy the increasing demand from traditional investors.

According to data from Autonomous Next, of an estimated 251 crypto hedge funds with $3.5–5 billion in assets under management, 175 of them were only established in 2017.

U.S. dollars image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin Performed Better than Cryptocurrency Hedge Funds, Says Pantera CEO

It seems the cryptocurrency hedge fund honeymoon is over. After a stellar 2017, revenue appears to have dwindled significantly. Recent reports indicate that the losing trend of these firms continued through May 2018.

Pantera Down by 26 Percent and Crypto Prices Continue to Decline

According to Dan Morehead, Bitcoin, the number one cryptocurrency, performed better than his hedge fund in May 2018. Morehead is the Chief Executive Officer of Pantera Capital, a cryptocurrency hedge fund company.

In a letter to the fund’s investors on June 19, Morehead said, Pantera declined by 26 percent in May. This dip is in contrast to the April surge that was about 50 percent. In total, the Pantera CEO said that the fund is down by 51 percent since the start of 2018. When compared with BTC, it appears the cryptocurrency fared significantly better. BTC prices dropped by only 15 percent in May 2018.

Diversified Cryptocurrency Investment Portfolio Turning out to be a Problem

Having a diversified portfolio is an age-old investment advice. The logic is that by holding stakes in different assets, a trader can hedge losses in one asset with the gains in other assets. It is supposed to be a safe investment strategy. However, based on the situation with Pantera, portfolio diversification might not be such a good idea.

In the letter to investors, Morehead said the poor performance of Dash, Waves, OmiseGo, and Bitshares were mostly responsible for the decline in the fund’s revenue. Dash has been in free-fall since the start of 2018 and is among one of the worst performing cryptocurrencies in the market. Dash prices slumped by more than 30 percent in May.

Waves is another digital currency that performed poorly, dropping 85 percent of its value in May 2018. Like Dash, Waves has declined significantly throughout 2018 so far. At the start of the year, the 40th-ranked cryptocurrency according to CoinMarketCap was trading at above the $12 mark. By the end of May 2018, prices had slumped to below $5. OmiseGo and Bitshares dipped by 34 percent and 46 percent respectively during the same period.

Pantera Calls Out Warren Buffet

The firm also criticised Warren Buffett for his negative stance of cryptocurrencies saying:

Buffett avoided the dot-coms, but he also missed Amazon, Facebook, Google Netflix, et al. If Berkshire buys Bitcoin as quickly as Apple — it will be in 2045. Buckle in.

Buffett has on several occasions, expressed his dislike of Bitcoin and the cryptocurrency market in general. The Oracle of Omaha has called the industry “rat poisoned,” and “a bubble.” Despite his successes in the financial market, the Berkshire Hathaway chief hasn’t always called it right, missing out entirely on many plum stocks and being to the party as far as investing in others was concerned.

Do you think it is wise to diversify your cryptocurrency investment portfolio? Keep the conversation going in the comment section below.

Images courtesy of Pantera Capital and CoinMarketCap.

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Bank of America Is Closing My Three-Year-Old's Account Over Crypto

Tim Enneking is the managing director of Crypto Asset Management in San Diego, California.


My daughter is 3 years old. Bank of America is closing her bank account on May 4 because of her “risk profile” and, it would appear, her “connection” with the crypto space.

Please let me explain. My management company manages a hedge fund which does indeed routinely invest in the crypto space. Importantly, the management company itself does not trade crypto.

The fund has an account with a bank other than BoA; the management company, my wife and I, and our daughter all have our bank accounts with Bank of America. This has led to some rather curious consequences.

My wife and I opened our joint checking and savings accounts with Bank of America (in La Jolla, CA) about four years ago, well before I founded the management company. We opened a Uniform Transfers to Minors Act (UTMA) account there for our daughter shortly after she was born. We have fifty dollars a month transferred into that account automatically to kick-start her college fund; that is pretty much the extent of the activity in the account.

There have never been any transfers into or out of my daughter’s account other than with the joint account my wife and I have in the same BoA branch. There certainly has not been any activity even vaguely related to crypto assets in it.

On April 4 of this year, we received notices dated two days prior that Bank of America would restrict our accounts in 21 days and close them in 30.

The management company received three such notices (one for each of its two bank accounts and one for its BoA credit card); my wife and I received three such notices (for each bank account and for my wife’s BoA credit card); and our three-year-old daughter received one notice for her account. 

Other than saying that these decisions were “final and won’t be reconsidered,” only the notice canceling the management company’s credit card had any explanation: “because your risk profile no longer aligns with the bank’s risk tolerance” – for a card linked to an account which has had an average six-figure balance since it was opened and for a company which has never had any debt whatsoever and has an eight-figure balance sheet.

It gets better.

Are you now, or have you ever been?

Just prior to our receiving these letters, on March 28, 2018, the Bank of America Money Services Business Control Center sent the management company a Customer Data Form for Money Services Businesses (MSBs), with numerous questions regarding what the management company does.

All of the questions were related to specific monetary transactions (transfers, exchanging currencies, issuing travelers checks), except the last one: “Does the Business engage in virtual/digital/crypto currency activity?”

To such a broad question, we answered yes – and duly completed the entire questionnaire and sent it back the same day.

When the cancellation notices arrived less than a week later, we were very impressed with the alacrity with which BoA operated.

Hardly…

Let me emphasize: the management company doesn’t deal in cryptocurrency. It doesn’t act as an exchange. It doesn’t act as a money handler. Its primary role is processing payroll for management company employees.

However, the word “crypto” does appear in its name. That apparently is a mortal sin in the eyes of BoA.

Two days after we received the notices of all of these closings of various accounts, I received a call from a woman who introduced herself as an employee of the Bank of America MSB Control Center.

She wanted to discuss some queries she had regarding our replies to certain questions on the Customer Data Form. I politely explained to her that her company had already told us that it was closing all of our accounts irrevocably, to which she blithely replied, “Oh, does that mean you don’t want to answer my questions?”

Somewhat nonplussed, I said, “What would be the point? Is there a chance that BoA then won’t close our accounts?”

To which she replied: “Oh, I have no idea about that. Are you sure that BoA is closing your accounts? If so, we’ll still close them, but if you answer my questions, we’ll have the information necessary to complete our records.”

I declined as politely as I could at that point and that was the end of the conversation.

Knee-jerk reaction

So, aside from the fact that the right hand of Bank of America clearly does not know what the left hand is doing, it would seem to me that BoA has gone a bit far in what is clearly a knee-jerk reaction to all things “crypto” and all things related – no matter how indirectly – to crypto.

My three-year-old daughter has a risk profile which does not align with the risk tolerance of Bank of America? In that case, I’m amazed BoA has any clients at all.

Dear fiat-centric people: Please stop being so paranoid.

Please stop trying to swat a fly with a sledgehammer (if you must treat crypto assets like a fly). Using a firehose to put out a match (sorry to mix metaphors) is simply bad business. The crypto space is expanding faster than any other segment of the financial sector.

Beware: One day, you will need it more than it needs you and you will regret such un-nuanced behavior.

In the meantime, the management company, my wife, daughter and I have all opened two new sets of accounts – with different banks, just in case.

I have, however, realized what the motto of Bank of America should be:

“Ready, fire, aim!”

Child playing with abacus image via Shutterstock.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Report: 9 Cryptocurrency Hedge Funds Have Closed in 2018

At least nine cryptocurrency-focused hedge funds were shuttered in the first three months of 2018, Bloomberg reported Monday.

The closures include the Crowd Crypto Fund and Alpha Protocol, the news service reported. While Crowd Crypto Fund shut down all of its digital platforms, including its social media presence, Alpha Protocol simply announced it was refunding its investors all of their funds. According to the fund’s website, the refunds were completed on March 31.

Even hedge funds that are more firmly established have seen decreased interest from investors. Bloomberg cited as an example Multicoin Capital, whose co-founder, Kyle Samani, told the news organization that “new capital has slowed, even for a higher-profile fund like ours.”

The news comes amid a broader decline in the returns these funds receive, the news organization said. Cryptocurrency hedge funds are seeing their returns drop an average of 23 percent, a figure which is not helped by a bear market which brought token prices down to some of the lowest levels since last year.

Indeed, only two of the top 25 cryptocurrencies by market cap saw gains in the first quarter of 2018, as previously reported. The overall market capitalization fell from $830 billion in early January to $251 billion last week.

Bloomberg noted that more than 200 cryptocurrency-related hedge funds have launched over the last several years. The article quoted Lex Sokolin, global director of fintech strategy at Autonomous Research LLP, as predicting that roughly 10 percent of these will shut down by January 2019.

Stock drop image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Wall Street Vets Raise $50 Million for Crypto Fund of Funds

Sitting at his desk at Credit Suisse, Sina Nader watched the bottom fall out of the global economy.

As a junior associate helping manage a $100 million portfolio of equities, he had a first-hand view of the 2007-2008 collapse from the Swiss bank’s Los Angeles offices and recalls frantically taking screenshots of the price as Lehman Brothers’ stock collapsed to “essentially zero.”

“My first thought was, ‘Holy shit, some traders just took out Lehman,'” Nader told CoinDesk. “My next thought was, ‘Holy shit, if the fifth-largest investment bank in America can be taken out like this, is the banking system actually safe?'”

Likening it to the feeling kids gets when they learn Santa Claus isn’t real, Nader says that the day changed him forever – and eventually sent him into the wild world of cryptocurrency.

After going down the crypto rabbit hole, Nader, who’s also worked for Morgan Stanley and Goldman Sachs, teamed up with a former private wealth analyst at Morgan Stanley, Jacob Kirschenbaum, to launch Cryptolux Capital, a crypto fund of funds.

And revealed exclusively to CoinDesk, Nader has secured about $50 million of the $100 million the fund is seeking.

While the number of crypto hedge funds has grown from about 124 in October to 175 today, Nader positions his experience in one of the traditional financial system’s worst hours as the key to Cryptolux’s success.

“I look back to what I saw in the financial services world, and that really sets the stage for me to be excited about crypto,” Nader said. “When you’re watching the five biggest investment banks in the country either go out of business or change their entire business model, you realize that the banking system is not as strong as many people may have believed it was.”

He continued:

“I’ve got this view that this banking system is not infallible, and wouldn’t it be nice if there was a system that went around, or was outside of the banking system for the use of wealth?”

Have some humility

According to Nader, Cryptolux is designed specifically to take advantage of the lessons he learned, in an effort to offset the downside risks of the volatile cryptocurrency market.

At the heart of that is Nader’s captivation by bitcoin’s ability to store value outside the traditional banking system. If the financial sector buckles again, bitcoin won’t go down with it.

But as he started looking at crypto hedge funds more broadly, he saw a number of cryptocurrencies and funds diversifying in the cryptocurrency space outperforming bitcoin itself by as much as 200 percent.

So, he started talking to other investors and coming up with a strategy that would capture those huge gains.

And Cryptolux believes it’s found it in a targeted fund-screening process that looks for an attribute he contends is all too rare among today’s cryptocurrency speculators, just as it was in investors before the financial collapse: humility.

“Anyone who really claims to know exactly what is going to happen in the crypto space is probably misguided at best,” Nader said, adding:

“So I think it’s important to come at this space with a strong amount of humility, because I think it will inform your investment strategy and ultimately your trading.”

Look to the futures

The second way Nader aims to offset downside risk is by further hedging with cryptocurrency futures options.

Nader said, initially the fund will establish short positions in the nascent bitcoin futures market. In the event of a market correction or pullback, he expects the bitcoin futures position will increase, providing Cryptolux with a buffer against the dips.

Currently, Cryptolux is only investing in bitcoin futures, but Nader expects to add ether futures should that product get approved by regulators.

Hinting at which hedge funds Cryptolux is mixing into its fund of funds, Nader said he’s “excited” about Silver 8 Capital and MultiCoin Capital, though he’s keeping an eye open for changes in the strategies of the fund managers over time, and could modify his own fund’s composition accordingly.

And going forward, Nader said the firm will be exploring the possibility of expanding its investments to include proprietary positions in crypto startups and other blockchain-related companies.

For interested investors, there’s a $1 million minimum to join, with a 1 percent management fee and a 15 percent carry on money made from the investment. By early next month, Nader expects to reveal further details about the company’s risk management program along with other new features.

And if all goes as planned, he hopes to raise a second fund targeting $125 million.

According to Nadar, he’s primed to do it, saying:

“Our view of what our value-add is we give you a diversified portfolio and we take care of the risk management component on top of that.”

Image via Sina Nader

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Interested in offering your expertise or insights to our reporting? Contact us at news@coindesk.com.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Buying Bitcoin? Investment Funds Will Be on the Blockchain, Too

Mona El Isa is co-founder and member of the board at Melonport AG, a decentralized digital asset management platform, and a former VP of equities trading at Goldman Sachs.

The following article is an exclusive contribution to CoinDesk’s 2017 in Review.


Imagine a future where humans play a minimal role in setting up, regulating and reporting regulatory requirements of investment funds, where the process is underpinned by reliable, cutting-edge technology.

It’s a future that’s not as far away as you might think, and it’s not being built by an existing bank or institution that you will have heard of.

Instead, it is being built by a new group of technical pioneers who were early to blockchain and understood what it meant. These entrepreneurs are now working on a full toolkit that is fast becoming available.

Already, there are distinct innovations emerging across what can best be described as the emerging investment management chain.

Protocols are being built that allow you to:

  • Bring data securely to the blockchain (e.g. Oraclize)
  • Exchange assets in a secure, peer-to-peer way (decentralized or hybrid exchanges like 0x, Kyber, Oasisdex, etc)
  • Issue all sorts of digital assets on-chain (protocol tokens, ETFs, regulated equities, derivatives, etc)
  • Set up and regulate your investment funds.

Yet, these projects are an example of a crucial point – if all these projects were working in isolation, the concept probably wouldn’t pose a credible alternative to the existing financial system.

However, the exact opposite seems to be true – bridges and highways are being built through network effects, securing an ecosystem which collectively gets stronger and stronger by the day.

Fitting in

Yet building a business in this environment isn’t conventional.

To start, Melon offers a protocol, one important technology link that magnifies the network effects of the ecosystem. Our role is allowing users to set up and manage a technology regulated investment fund pre-defining a rule-set for your investment fund in a matter of moments.

The goal is to take what today occurs in a few months (and involves a couple of hundred thousand dollars) and replace it with an automated alternative.

You get to choose what risk limits your fund has, what fees you want to charge, what pricing source the fund accounting is based on, which assets and exchanges the manager is allowed to interact with and which investors are allowed to invest in your fund. All these rules are written in code and enforced by an unbiased, efficient, transparent technology commonly referred to as blockchain and adhere to blockchain accounting standards.

By following a standard template – any exchange protocols, data feed providers, digital KYC/AML companies or asset issuers can link their product suite to Melon’s open-source protocol making it an available option to users.

From a user perspective, it would feel like going into an “app-store” for investment funds and picking out the different service providers you want to plug into your fund structure to meet the criteria you need to meet.

This gives regulators and investors the security and transparency around reporting, we also remove entirely the idea of human “conflict of interest.”

User adoption curve

But, we are just beginning, and limitations still exist.

Like many other protocol providers, the first limit is around regulation. There are certain fund laws that are not fit for modern technology. Some of the current laws were simply created in a different time, without consideration of all available technology available. As an example, most funds today must have a custodian and fund administrator by law.

A custodian typically acts as safekeeper of the fund’s assets and the fund administrator typically takes care of accounting, auditing, risk management, compliance (KYC/AML), investments/redemptions and regulatory reporting.

On top of that, it is pretty standard practice that for every investment professional in a medium-sized investment fund, there will be four non-investment professionals (ie. legal, support, operational, fund-administrator focused, trade reconciliation, custody, risk management, auditing… and the list goes on).

What if we could automate the fund administration and support function entirely by smart-contract code and allow investors to own full custody of their assets at all times, while still partaking investment fund strategies?

There is no reason why regulation shouldn’t catch up to technology.

Another limitation is that today, the range of traditional investment fund assets, like fiat currencies and equities, aren’t available on a blockchain. A fund that operates in a technology regulated environment will have to use modern digital assets like tokens and can’t deal with paper-based certificates.

However, traditional assets are fast becoming tokenized and we’re just getting started.

We don’t have to look very far with Daimler recently issuing the first bond on blockchain technology, companies like Neufund, Jibrel network, Overstock and Otonomos working to put regulated equities on-chain or several central banks making public their plans to tokenize fiat currencies.

It’s just a matter of time before every asset class we know will be digital simply because it is more efficient, transparent and secure. In which case, it’s not too long until we can imagine a fund management world which is entirely run by digital rule-sets and transparent processes.

Crypto fund paradox

Crypto funds today are emerging left, right and center in an attempt to gain investment exposure to this new class of blockchain innovators.

The irony is, that despite all the new technology surfacing, crypto funds can be even more expensive to set up and run than traditional funds. This can be seen in some of the fees they are charging. It is typical to see higher fee structures for crypto funds than traditional asset funds.

A large part of these high costs are related to the fact that investment fund laws have been created for the “old world” and simply don’t account for or understand technology like blockchain. This means that new crypto fund launches are having to squeeze into existing rules and regulations designed for a different system.

Going back to the example of investment fund law requiring fund administrators. Fund administrators are extremely expensive and mostly not ready or equipped to deal with crypto assets. However, many of them are still taking on crypto fund clients and charging handsomely for it, without necessarily solving all the problems (or charging extra for the hassle).

The crypto investment funds are likely to be the first to shift, but there’s no doubt that when traditional funds see evidence of how much they can trim their everyday cost basis and pain-points by, they’ll be quick to follow.

And by then, we believe all traditional assets will be tokenized.

Why wouldn’t they be?

See a different future for crypto hedge funds? CoinDesk is accepting submissions to its 2017 in Review. Email news@coindesk.com to contribute.

Vintage calculator via Shutterstock

The leader in blockchain news, CoinDesk strives to offer an open platform for dialogue and discussion on all things blockchain by encouraging contributed articles. As such, the opinions expressed in this article are the author’s own and do not necessarily reflect the view of CoinDesk.

For more details on how you can submit an opinion or analysis article, view our Editorial Collaboration Guide or email news@coindesk.com.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Morgan Stanley: Hedge Funds Poured $2 Billion into Cryptos in 2017

Banking giant Morgan Stanley has estimated that hedge funds invested a massive $2 billion in cryptocurrencies this year.

According to Business Insider, the figure was released in a note entitled “Bitcoin Decoded” sent by Morgan Stanley to its clients this week.

The investment bank further detailed that more than 100 crypto-related hedge funds have sprung up over the past six years, however 84 of the funds launched in 2017.

The sharp growth trend coincides, unsurprisingly, with bitcoin’s 20-times price increase this year, from around $800 in early January to a high of almost $20,000 last weekend.

Compiled with data from Morgan Stanley’s own research and Autonomous NEXT, the note helps bring into focus the surging interest from institutional investors at a time when bitcoin futures products have also been launched in CME Group and CBOE, two of the largest commodity exchange platforms in the U.S.

As reported this week, legendary hedge fund manager Bill Miller, chairman and CIO of Miller Valued Partners, said that his MVP1 fund now puts nearly 50 percent of the weight on bitcoin and bitcoin cash – a notable increase from just 5 percent in bitcoin when the fund first got involved with cryptocurrency.

Disclosure: CME Group is an investor in Digital Currency Group, CoinDesk’s parent company.

Morgan Stanley image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Call To Enter Crypto-World: Major Hedge Funds

Hedge Fund Research (HFR) is a firm that tracks institutional investments in blockchain tech and cryptocurrencies. And the company’s two crypto-tailored indices are showing titanic returns for the hedge funds that have taken a chance on the space so far.

The two mentioned indices in this case are the HFR Cryptocurrency Index and the HFR Blockchain Composite Index  – The world firsts tracking hedge funds’s performances when it comes to crypto.

HFR president – Kenneth Heins commented:

“Investor interest in funds offering exposure to blockchain technologies and cryptocurrencies has surged in recent months.”

If you are more of a number person than words – the company’s Blockchain Composite Index has its tracking running upwards in a strong 1,520 percent only from Jan to Nov 2017 [not even a full year].

During the same time-period, the HFR Cryptocurrency Index has the tracked funds up by more than $1,600 percent.

And, if recent maneuverings in the marketplace are any indication, the ongoing surge is only just beginning. That’s because Bloomberg is now reporting the $14 billion USD firm ED&F Man Capital Markets just “signed agreements with 35 hedge funds, family offices, and proprietary-trading firms to help them buy and sell bitcoin futures and is in talks with at least a half dozen more.”

That is truly quite a lot of money that will be coming as waves from the periphery of the crypto-world to its center meaning hedge funds directly buying bitcoin or other cryptocurrencies and not just ETFs and futures.

Indeed, with Coinbase launching Coinbase Custody specifically for institutional funds, it seems it’s only a matter of time before Wall Street helps cryptocurrencies go mainstream.