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Crypto

The Emergence Of Cryptocurrency Hedge Funds

The opportunities and the potential of digital assets are immense, especially cryptocurrency. They are the future of digital assets and can transform it altogether. Let’s take a better look at this area.

One of the most popular and recent developments should be the crypto hedge funds. Why? This is because, in the conventional crypto funds, there were just private traders and investors. With the emergence of crypto hedge funds,  there is a significant rise in the number of professionals in this market, which is surely commendable. According to the data published this year, 63% were launched in 2018 and 2019.

Proved efficiency

Based on the PwC-Elwood Crypto Hedge Fund’s recent reports, one of the most common and well-known crypto hedge fund strategies is quantitative, which is about 48% of the funds. Discretionary long-only for 19% and discretionary long/short for 17%, and multi-strategy for 17% follows the list.

Another fact based on the annual PwC–Elwood Crypto Hedge Fund Report, the most common crypto hedge fund strategy, is quantitative (48% of funds). It is followed by discretionary long-only (19%), discretionary long/short (17%), and multi-strategy (17%). And according to them, crypto hedge funds are indeed one of the best options out there as digital assets. They have the potential to supply sustainable income.

The future is Crypto Hedge Funds

The majority of the people investing in such an arena are either family offices or individuals with a high net worth. This market is evolving in a pretty significant way and will surely boom in the next few years for the very right reasons.

Based on the sources, the assets of crypto hedge funds have doubled from $22 million to $44 million in just a matter of a year. Isn’t this fascinating? People are ditching their old methods and gradually switching to the new digital means of investing. The former CEO of Prudential Securities also suggested that Bitcoin and other cryptocurrencies are indeed safe options.

In the month of May 2020, Bitcoin had an ideal inflammation, and investors clearly see the potential in the hedge funds. They are potent enough to be a significant part of the additional inflow of capital in their world of investment.

Increase in investor demand

With the transparency and the clarity that regulated crypto hedge funds provides in the market, there is a prominent growth among the investors. As mentioned before, the digits have been doubled by a year. There is a precise prediction that the number might triple by the end of 2020, which is undoubtedly a considerable feat. Compared to the other assets, these are a small sum, but this industry’s growth is insane!

With such growth, bitcoin is surely becoming the digital store of value. The recent hedge inflation indicates that the demand from investors is increasing with every passing day.

Conclusion

The options and prospects of Cryptocurrency hedge funds are immense. Thus, by now, it is pretty evident why cryptocurrency hedge funds are undoubtedly a great deal. Investors are gradually understanding its worth and have started to invest in them. Suppose you are a budding investor and are clearly thinking about investing. In that case, this should be your first choice right now since the old ones are surely outdated, and the new digital assets have clearly taken their place.

Crypto

Philippines Launches Bond Distribution Platform On Blockchain

In a major step by the Philippines Bureau of Treasury (BTr), they have announced their partnership with the Union Bank of the Philippines and also the Philippine Digital Asset Exchange or PDAX to launch a new app known as Bonds. This new app will be a decentralized ledger technology platform allowing the government to distribute retail treasury bonds. Using the platform, the investors will be able to purchase retail treasury bonds for a minimum of 5,000 Philippine pesos or approximately $100. They will accept payments through multiple options such as online banking, e-wallets, and over-the-counter. The treasury will issue bonds worth 192.7 billion Philippine pesos ($3.9 billion) through the app in the coming months.

After the announcement, Rosalia V. De Leon, the Philippine National Treasurer, issued a statement stating that the new app Bonds will provide an opportunity to Filipinos to invest in new and the latest retail treasury bonds such as RTB-24 and the Progreso Bonds. She further added that the app would increase investment opportunities and allow the Republic to aid in their response to COVID-19 and help in economic recovery.  The new platform will document the transactions in DLT infrastructure along with the legacy centralized system. Edwin R. Bautista, the CEO and the UnionBank President claimed that this is one of the first such DLT-based systems for retail Treasury bond distribution in Asia and around the world. He claimed that the Philippines were ready to use innovation and technology to enhance opportunities and benefit its people.

According to a recent survey, about 77% of Philippines adults still do not have a bank account. Thus, the new platform is designed to allow such residents to invest their money without a bank account. Thus, Bonds form an important platform to bring investment opportunities to the unbanked population in the Philippines. The new app will run on technology allowing the Bureau of Treasury to reduce costs and the time necessary for manual verification and settlement. The Bureau expects the platform to make the bond distribution process easy and economically viable for all parties involved. Even though the app might be targeting unbanked Filipinos, the drive will also help raise the much-needed fund for the government.

Bonds – the new bond issuance platform, is receiving the support of national and international regulators such as the Philippine Securities and Exchange Commission, the Singaporean market regulator, and many other fintech and blockchain establishments. The spokesperson for MAS, Sopnendu Mohanty, said that Singapore’s blockchain community would be happy to work alongside Philippines and share open-source resources, learning and help connect nodes to integrate the ensure market infrastructure to bring in transparency. UnionBank also launched Stablecoin last July to help increase financial inclusion in the Philippines. The COVID-19 pandemic has led to an increased usage of banks’ digital services, and it could easily lead to the end of cash in the coming years.