Cambrian Says Its New Bitcoin, Ethereum Trusts Will Cut Through Volatility
The California-based asset manager recently hinted to launch new crypto trust. However, the fund manager does believe that new trust will surely reduce the element of volatility related with cryptocurrency. In recent months, the inclusion of institutional investors in cryptocurrency have brought instability in the crypto market.
Cambrian Asset Management hedge fund, a Quantitative crypto fund said that its newly formed crypto-oriented funds that support bitcoin and ether trading, will significantly reduce the level of volatility risk. The volatility involved in the crypto sector has been the biggest concern for different governments and regulatory authorities. So, if the statement announced by the Cambrian Hedge fund is true than this would significantly improve the crypto market. The $200 million worth fund during their recent statement said that its strategic management team will reduce the risk factors involved in the crypto market. It will also bring instability.
The hedge fund also said that the same strategy being implements on its crypto funds, the strategy has minimized the risk up to 70%. It also allowed the funds to earn the highest amount of revenues as well. The company policy also clarified that private investors cannot invest that fund. Cambrian’s crypto funds are only available for institutional investors. The minimum amount required for the investment is $50,000.
The economy of scale here shows that a large number of private investors will not be able to invest here. The reason that fund is so confidently speaking about bringing stability is that these crypto funds will only be available for institutional investors. Over the past couple of years some of the world’s biggest corporate tycoons have entered the crypto market. Apart from the minimum investment, the fund will charge 4% as the management fee. It is almost double that being charged by the Grayscale Bitcoin Trust.
As per the first half of the financial year 20201, Cambrian’s flagship hedge fund has returned 76% this year. The Cambrian’s Hedge fund was initiated by the executive of Winton Capital and Millennium Management. However, the fund is based in California and located in Mill Valley. It seems that institutions and institutional investors have realized that crypto market holds the potential of doubling the investment. Despite the fact that the traditional financial market has shown steady recovery from the covid-19 pandemic. But still the recovery is slow-paced. However, crypto market on the other hand emerged as the backup. The recent announcement by Cambrian Hedge Fund is good new for those looking forward to investing in institutional investors. It is good that crypto is now getting the attention of diverse investors.