With election season bearing down on the USA, crypto markets have become increasingly volatile, marked by significant price swings and uncertainty over future regulation. Historically, however, cryptocurrencies have always bounced back stronger following periods like this. Now might be the best time to invest in crypto!
If you want to curtail some of the problems people have with crypto investments, you don’t have to buy crypto straight from the source. Rather, invest with one of the many crypto hedge fund companies as an alternative to day trading. Find out how and with whom you can invest in this handy guide.
What Makes Crypto Hedge Fund Companies Unique?
Firstly, it’s good to understand what makes a crypto hedge fund different from its two closest concepts (cryptocurrencies and hedge funds). Traditional hedge funds manage portfolios comprising a wide range of more traditional securities (bonds, REITs, stocks, etc.).
Crypto hedge funds hold portfolios that are made up of only cryptocurrencies. Investors can, therefore, get the stability that hedge fund management can offer while also having access to the astronomical returns that cryptos are known for.
Investing in a crypto hedge fund is also different from buying crypto directly because it’s far more secure. Your cryptocurrency eggs are spread across multiple baskets, protecting you from any one currency’s sudden price collapse (which is also typical in the crypto game). The hedge fund is also a buffer against anyone on the internet who may be hunting for crypto buyers.
Best High-Return Crypto Hedge Funds
Almost any crypto investment fund will be able to post higher returns than other assets during a crypto boom. However, you also want to consider a company’s risk-to-reward record when measuring hedge fund performance. Only a few hedge funds can get high returns without exposing their clients to unacceptable levels of risk.
Pantera Capital
Pantera Capital is one of the oldest crypto investment funds. As early birds, they’ve built up a wealth of industry expertise over time. Their investments in blockchain companies further compound their expertise.
Pantera Capital offers various funds from which investors can choose. These range from their not-too-diversified Bitcoin Fund to their Digital Asset Fund.
Multicoin Capital
Multicoin is another trusted name among crypto hedge funds. They’ve been around since 2017 and are known for having unique investing approaches.
Multicoin Capital uses economic models to project which cryptocurrencies will make suitable investments. That data then informs how Multicoin structures its asset portfolio. Multicoin Capitals’ venture capital approach also invests in blockchain companies for longer-term yields.
Truecode Capital
Truecode Capital is another firm that uses a heterodox approach to give its clients great returns. Truecode’s founder, Joshua Peck, is a leading expert in all aspects of digital asset risk.
This means their approach to high-yield investments is centered on investor capital protection. Think of it this way: it’s no good to get high ROI during a crypto boom if market volatility and security risks eat into a lot of that value.
Peck and Truecode Capital understand these dynamics. Truecode is set up for unparalleled confidence in investing.
Truecode’s services can help manage individual and family wealth. It can also provide businesses with a unique rainy-day asset.
Sequoia Capital
The Sequoia Capital crypto fund is a part of a globe-spanning investment machine. Sequoia uses a tech-based approach in its analyses and trading strategies and focuses on token cryptocurrencies. Sequoia also focuses on developing good governance practices in the crypto space, making it a safe option for investors.
Morgan Creek Digital
Institutional investors like banks and large corporations would typically be unable to invest in cryptocurrencies. Governance codes and laws normally disqualify these assets because of their inherent risks. That’s where Morgan Creek comes in.
Morgan Creek was already one of the top hedge fund firms. It partnered with Bitwise to bring a cryptocurrency asset management service. Together, they make it possible for institutional clients to invest in all the most popular cryptocurrencies.
The Morgan Creek Digital fund is also open to individual investors. However, Morgan Creek is also one of the more exclusive hedge funds, making it less ideal for many consumers.
BH Digital
Brevan Howard Asset Management is another hedge fund company that had already made a name for itself before its digital asset wing launched. BH Digital has an illustrious staff of traders, managers, and software engineers who help it remain one of the top-performing crypto funds.
BH Digital’s approach is to get tech experts and seasoned investors to work together. These crypto fund managers’ shared expertise gives BH Digital’s team unique insights into the technological and economic sides of the market.
Chainview Capital
Chainview Capital had a meteoric rise in 2023, doubling its value after the token crash at the end of 2022. Chainview’s approach is to identify potentially high-yield blockchain projects. By investing in these projects, Chainview helps develop blockchain technology and delivers excellent returns to investors.
BlockTower Capital
Lastly, BlockTower Capital is the jack-of-all-trades of crypto hedge fund companies.
On the one hand, the firm offers conventional crypto funds. Investors can choose between going all-in on one token or investing in a basket of currencies. BlockTower’s crypto managers often have both financial and technical expertise.
On the other hand, BlockTower also does a lot of cryptocurrency investment research. It analyses market data to develop critical insights for crypto trading. It also backs several blockchain projects that help move the technology forward.
Choosing the Right Crypto Hedge Fund
Crypto hedge fund companies offer an amazing service to individual and institutional investors alike. They offer the stability of diversified holdings along with the high ROI potential that crypto is known for.
Some (Truecode, Pantera, and BH) focus on investing in actual crypto. Others (Multicoin, BlockTower, and Sequoia) invest in and support the actual technology by investing in crypto tech companies.
With such a wide array to choose from, you’ll want to make the best decision. Truecode Capital is dedicated to providing the best information, safety, and investing opportunities to its clients. Contact Truecode today for more insights and investment opportunities.
