- Hedge funds offering exposure to a more diverse portfolio of cryptocurrencies outperformed bitcoin last month after the benchmark digital asset fell off its all-time-high.
- Bitcoin’s gains are also tempered somewhat because there are an increasing number of instruments to bet against the inexorable rise of the cryptocurrency versus many altcoins.
In signs of broader adoption and search for greater returns, hedge funds offering exposure to a more diverse portfolio of cryptocurrencies outperformed bitcoin last month after the benchmark digital asset fell off its all-time-high.
While bitcoin ended the month lower by 6.17%, the Eurekahedge Crypto-Currency Hedge Fund Index only fell by around 2% in comparison, adding to growing evidence that so-called “altcoins” might offer investors superior performance to bitcoin, especially given bitcoin’s torrid rally to almost US$69,000 in early November.
Although bitcoin is the oldest and by far the most well-known cryptocurrency, as more investors pour into the space, there will naturally be some degree of curiosity to explore opportunities outside of bitcoin.
Bitcoin’s gains are also tempered somewhat because there are an increasing number of instruments to bet against the inexorable rise of the cryptocurrency versus many altcoins.
The volume and liquidity of derivatives for bitcoin far exceeds those of other cryptocurrencies, making it somewhat easier for traders to bet against the benchmark cryptocurrency.
And investors looking to gain access to altcoins without handling the cumbersome private keys themselves may have more options sooner than expected.
Digital asset firm Securitize is launching two tokenized funds that will track cryptocurrency indices from S&P Dow Jones Indices.
Of greater relevance to those looking for more exposure to altcoins, the Cryptocurrency Large Cap Ex-MegaCap Index, among the first of such funds and will only be available to accredited investors, with 30 different cryptocurrencies constituting the fund and a management fee of just 0.5%.
According to a press release from Securitize Capital, the asset management arm of Securitize,
“The new tokenized funds provide investors exposure to a diverse blend of cryptocurrencies and emerging technologies.”
