At the same time, in annual terms, crypto funds remain an extremely volatile investment mechanism. In 2017, the Eurekahedge index of cryptocurrency hedge funds rose by 1,708.50% with Bitcoin reaching a historic high, and in 2018 fell by 70.27%.
The potentially high profitability of cryptocurrencies continues to attract risk-prone investors, says Steve Kurtz, head of assets management at Galaxy Digital Crypto Fund. “Bitcoin has a higher return on an annual, three-year and ten-year period than any other asset class,” he said in a conversation with the Financial Times.
Chris Sülke, Cumberland Cryptocurrency Fund Global Development Director, believes that "joining banks, perhaps as brokers between clients and liquidity providers, is a matter of time."
Founders of Galaxy Digital and Cumberland are well acquainted with traditional markets: Galaxy Digital founder Mike Novogratz has been a Goldman Sachs partner in the past, and DRW, which launched Cumberland, is also active in a wider investment space.
Earlier it became known that the net income of Galaxy Digital for the first three quarters of 2019 amounted to $ 58.4 million, thus exceeding the same period of the previous year by 133%.
Pi Capital Union