Cryptocurrency hedge funds have become increasingly popular all over the world. In Canada, the biggest crypto fund goes by the name of Rivemont Crypto Fund. Interestingly enough, its asset allocation heavily favors cash over cryptocurrency at this stage.
Canada’s Crypto Fund Needs More Bitcoins
One would expect a cryptocurrency hedge fund to have a vast portfolio of various cryptocurrencies. In the case of Canada’s Rivemont Crypto Fund, that is not exactly the case. While the company has invested some money in Bitcoin itself, that only represents 9% of its current assets under management. There are no other cryptocurrencies in the company’s portfolio at this stage, which is rather worrisome.
It is rather uncommon for a cryptocurrency hedge fund to keep most of its assets in cash. Although Rivemont knows best how to handle its core business, decisions like these are still very controversial. The company claims most of its investors are waiting to see if cryptocurrency will reenter a bull market at some point. Given the current market sentiment, that seems to be only a matter of time.
Establishing a long-term uptrend for Bitcoin has proven to be a big challenge throughout 2018. There has been far too much bearish pressure to warrant any real excitement in this regard, although markets are always subject to change. If the current market momentum can remain in place for more than a few days, things will undoubtedly get very interesting in the near future.
The launch of Rivemont’s Crypto Fund occurred at an interesting time. The company launched its offering on December 14th of 2017. At that time, Bitcoin was nearing its all-time high of just under $20,000. Since then, the Bitcoin price has not seen too much bullish momentum. Reaching that all-time high value once again may prove to be challenging.
This doesn’t mean the cryptocurrency industry is running out of steam. Nor are investors cooling off on Bitcoin and the various altcoins. Instead, they are biding their time and waiting for things to improve in spectacular fashion. When that happens, it is evident Rivemont Crypto Fund will make strategic investments. Both Bitcoin and Ethereum are of great interest to the firm, although other options will be explored as well.
In its current shape, the Rivemont Crypto Fund can invest in a total of six different currencies. Regulatory concerns limit the company’s offerings a bit in this regard. Even so, Litecoin, XRP, Bitcoin Cash, and Ethereum Classic are also accessible, and they all make for intriguing investing options. Rivemont is bullish on cryptocurrency, but they are all about risk versus reward.