Crypto-currency funds: index funds and hedge funds
Beginning on January 3, 2009, when the first block was built in the Bitcoin system, thanks to the technology of the blockade, its own “ecosystem” began to emerge. Its part has become alternative crypto-currencies (altcoins), exchanges for the exchange of digital currencies, ICO (Initial Coin Offering) and digital tokens. The ecosystem of digital currencies has become a challenge and an alternative to the existing financial system. Also, this ecosystem has its own mechanics of creating value and there are expectations that affect the price of digital assets.
Governments, financial regulators and tax authorities all over the world are interested in curbing the phenomenon of digital currencies. And the participants of the financial market are more and more interested in the opportunities offered by digital currencies. This new class of assets is already actively developing investment funds and groups.
Examples include index funds:
The Token Fund
It allows you to purchase a whole set of digital currencies in a matter of seconds. Specialists of the fund form a portfolio of the most promising investments. Based on the prices of various digital currencies, the price of the TKN token is formed. In addition to Bitcoin and the Etherium, the fund invests in another 15–20 digital currencies.
Crypto20, similarly arranged crypto-currency index fund. Having bought one simple C20 token, the investor thus invests money in the TOP-20 digital currencies.
Also hedge funds are gaining popularity. The analytical company NEXT has prepared a study according to which more than 50 hedge funds are engaged in investing in crypto-currencies. And they are not deterred by the fact that the environment for investment is very volatile and not regulated. There is among these funds Ether Capital, which specializes in investing in the Etherium, Medici Crypto, a young fund behind which IT billionaire Mark Cuban stands.
The existing crypto-currency funds are growing and new funds are appearing all the time. Therefore, there was a need for an architecture for funds. This task is performed by the Cryptics project (cryptics.tech). Using machine learning and artificial intelligence, Cryptics creates a flow of analytics and forecasts, on the basis of which fund managers can make informed decisions. The advantage of Cryptics is also that forecasts are available not only to owners of large capital, but also to ordinary users of crypto-currencies.