According to a tweet by investor Tuur Demeester, Hedge Funds regarding to Crypto Currencies are "exploding"
Demeester refers to an article listing fund companies or law firms who are currently working on an authorizations for crypto-hedge funds. In total, more than 70 hedge funds are in the pipeline.
Corey McLaughlin of Arthur Bell comments on the situation in the article as follows:
"I have been part of the Hedgefonds business since 1998, but I have never seen such a volume of new hedge funds. It's just crazy. "
Implications for the crypt market
A very comprehensible response from the investment perspective, after all, everyone would like to participate in the enormous price recovery of the crypt currencies. It should be fairly easy for fund managers to come to funds from wealthy or institutional clients who want to invest part in cryptos.
In particular, through the more rigorous regulation of ICOs by the US Securities Supervision Authority (SEC), increased legal certainty in the US attracted investors. Since the issuance of cryptanions is now subject to similar, if not the same, standards of general securities regulation, the idea is not far from trying to apply all existing forms of financial products to cryptanalysis. Regardless of whether ETF, hedge funds or leverage certificates - an enormous number of applications for approvals are expected in the near future.
Through the greed of investors and financial institutions as well as the creativity of financial engineers, huge sums of money can be pushed into the crypt market, which may lead to a new bubble formation.
In principle, it should be pointed out that there are regulatory differences between the US and Europe as well as other regions and economic areas. This means that access to corresponding foreign financial products is often limited.
What do you think about this movement in the crypt market?
Let me knowe in your comments!