An Israeli investment firm has launched two cryptocurrency funds, with a third on the way. The company’s CEO explained the funds’ three investment strategies to news.Bitcoin.com. These funds are Cayman Islands-registered, available to institutional and accredited investors.
Three Funds, Investment Strategies
Cryptocurrency investment firm Silver Castle has launched two cryptocurrency funds with another on the way. Bloomberg describes the company as “Israel’s first dedicated cryptocurrency investment firm for institutional and accredited investors.”
Silver Castle CEO Eli Mizroch told news.Bitcoin.com on Wednesday, “We have now launched our first two funds. They are both Cayman Islands-registered and are open to institutional and accredited investors.” He elaborated:
The first fund is algo-based, momentum-driven, long [and] short on bitcoin and top five [crypto]currencies. The second is smart beta, fully-invested in the top 10 coins. We aim to launch our third fund, a VC fund, that will participate in token offerings, in Q1 2019.
The firm has its proprietary crypto-algo system and security protocol. Smart beta combines passive investing strategies with active ones.
Bloomberg reported on Sunday that the first fund “picks the five biggest coins by market capitalization,” adding that this algorithmic trading system “has been used in-house for over a year and the portfolio has achieved ‘high double-digit’ returns in dollar terms despite bitcoin’s plunge this year.” In contrast, the second fund “is fully invested, automated and offers a basket of the top 10 coins, weighted according to an algorithm.”
The news outlet also noted that Silver Castle launched the first two funds this month “and expects to have $50 million under management by the end of the year.”
‘Landmark Launch’ for Israel
Silver Castle’s website states that the company manages crypto-based assets, advises companies on initial coin offerings and security token offerings, as well as invests in blockchain technology initiatives.
Gadi Isaev, founding partner of the Israeli Blockchain Association, calls Silver Castle’s launch “a landmark event for the entire Israeli market,” citing that its team comprises both leaders and pioneers of the Israeli financial industry, Bloomberg conveyed.
Mizroch told the news outlet, “We spent close to a year building robust infrastructure for managing other people’s money at the level of institutional grade.”