The market for cryptocurrency is booming, with bitcoin and ether tokens turning early buyers into millionaires. Now hedge funds are getting in on the blockchain game. Forbes reported there are now well over 15 hedge funds managing digital assets and cryptocurrency investments, including Polychain Capital, which manages assets worth $200 million and was founded by former Coinbase employee Olaf Carlson-Wee.
That’s great for uber-rich people who were already making tons of money. But will it have any impact for the rest of us? Yes, actually. It is a big deal, especially for young people trying to figure out how to make their future financially secure. This trend could push up bitcoin prices and other tokens of its ilk in the short term, making it harder for average Joes to get involved with blockchain tender.
However, in the long run, this shift could push cryptocurrency to be more reliable and accessible for everybody, boosting the digital newcomer to become a real alternative to banks and paper money.
Newsweek is hosting an AI and Data Science in Capital Markets conference on December 6-7 in New York. Photo: NewsweekMediaGroup
Brian Kelly, of Brian Kelly Capital Management in New York, told International Business Times he’s seen a surge in investor demand for cryptocurrency options. His fund now offers options to buy a variety of tokens, like Zcash, XRP and Litecoin, plus initial coin offering opportunities, aka fundraising campaigns by tech companies. According to Nick Tomaino's The Control, ICOs have already raised more than $1.2 billion worth of capital since May 1.
“Over the next year or two, there’s going to be a wall of investor money coming into the space,” Kelly said. “That will absolutely have an impact on [currencies’] price.” In his opinion, this move represents a “stamp of approval” from established financial power players.
This could make it easier to imagine a broader cultural shift t...