A cryptocurrency asset management service has been launched by deVere Group, one of the world’s largest independent financial advisory companies, signalling a key step in their acceptance into the mainstream financial world.
The actively managed cryptocurrency service, the deVere Digital Asset Funds, has been launched in partnership with Dubai-based hedge fund manager Dalma Captial Management Limited.
It features a selection of digital currency solutions, and is being targeted at experienced investors.
“These actively managed cryptocurrency solutions address growing demand by clients who want the potential associated benefits of exposure to the digital currency sector – which typically include portfolio diversification and decent returns – but with reduced volatility for which the market is known,” explained deVere Group founder and CEO Nigel Green.
Cryptocurrency asset management solution signals entry into mainstream finance
Although not the first cryptocurrency asset management service, the launch of a solution by such a prominent organisation is a key step towards complete financial acceptance for Bitcoin, Etherium and their contemporaries. And with Bitcoin now turning ten, the timing is key.
“Cryptocurrencies are now undeniably part of mainstream finance,” said Green.
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“Their momentum continues to gain traction as both retail and institutional investors increasingly value the need and demand for digital, global currencies in today’s ever-more digitalised and globalised world. The crypto market continues to expand considerably, with mass adoption on the horizon.”
Algorithmic trading for cryptocurrencies
The cryptocurrency asset management solution features algorithmic trading, which allows investments to be diversified across different cryptocurrencies and exchanges.
“The deVere Digital Asset solution will invest in a diversified portfolio of digital assets via algorithmic trading over different platforms – including cryptocurrency exchanges and OTC markets – as well as arbitrage opportunities,” explained Green.
“Through a ground-breaking algorithmic system, when the price of one asset, for instance Bitcoin or Ethereum, is greater on one platform than on another, the opportunity is identified to generate profit from the difference of price across platforms. These trades, referred to as arbitrage, allow profits to be generated with little or no directional market risk.”
The investment potential of cryptocurrencies
While cryptocurrency investment has been dismissed as nothing more than a fad by some, the organisations behind the platform insist that there is very real – and very significant – investment potential in cryptocurrencies.
“Crypto Asset Markets abound with durable inefficiencies – creating opportunities for hedge funds to generate uncorrelated excess returns through systematic relative value arbitrage, momentum trading and mean-reversion strategies,” said Zachary Cefaratti, CEO of Dalma Capital.
“Crypto Markets have created opportunities that we have not seen in conventional markets for decades. Arbitrage opportunities abound – the prices of the top 25 crypto assets vary across over 400 liquidity venues. The ability to trade long and short allows profit opportunities regardless of market direction.”