The extraordinary rise of institutional investments and Hedge funds in Bitcoin is an incredible sign for Bitcoin (BTC) enthusiasts. Because this interest shows that institutions believe in the long-term potential of Bitcoin.
The U.S. Federal Reserve announced a $ 1.2 trillion aid package to support economic activity during coronavirus. Some other countries in the world have taken similar money-printing and distribution measures. However, most of this money went to Bitcoin investments.
The best cryptocurrency hedge funds, which manage several million dollars in assets under management or AUM, have gained quite high in the past few months.
Growth of Bitcoin (BTC) Hedge Funds
The top three Hedge Funds dealing with cryptocurrency by management or assets under AUM are as follows:
- Grayscale Investments
- Pantera Capital
- Polychain Capital
Michael Sonnenshein, Grayscale Investments Managing Director, said about the growing interest in cryptocurrencies:
Investors enjoy volatility and benefits. Interest in our products has increased significantly over the past few months. Smart money turns to attractive prices.
Hedge Funds are a Safe Way to Invest in Bitcoin (BTC)
The interest of Hedge Funds in Bitcoin and other cryptocurrencies is exceptional so far. And more and more investors are applying to these Hedge Funds.
These funds are an excellent alternative for people who want to invest in BTC or other cryptocurrencies but are afraid to do so. These funds manage all risks, constantly monitor the portfolio and make adjustments. Obviously they demand a commission for these services, but they save the investor from much more trouble.
What Does This Mean For Bitcoin?
Not only novice investors, but also investment experts make good use of Hedge funds. And most of these funds have a certain lockout period, during which investors don’t pay their money. It occasionally saves the fund from oscillations and benefits for a certain period of time.
A lot of Hedge funds investing in Bitcoin show that BTC is seen as an increase in the long run. In addition, hedge funds see Bitcoin as a protection against economic crises!