First to Bring Institutionalization to Crypto Hedge Funds in Asia
SINGAPORE – Media OutReach – 20 September 2019 – BBShares, a global alternative investment firm, today announced the launch of two crypto hedge funds: the Systematic Opportunity Fund and the Diversified Alpha Fund. These funds allow investors to leverage price gains of leading digital currencies through a traditional investment vehicle.
BBShares also reported strong returns for its Mega Cap Fund with over 300% net investment returns in the first half of 2019. This is the first portfolio launched by BBShares in 2018, looking at top digital currencies by market cap, including BTC, BNB, ETH, XRP, BCH, LTC, EOS and USDT.
“Cryptocurrencies like bitcoin have insignificant statistical correlation with traditional asset class like equity/fixed-income which means the potential alpha is high in this class. Although there are 150 active crypto hedge funds out there, they collectively manage only USD 1B AuM (source: PWC 2019 Crypto Hedge Fund Report), while a trust product like Grayscale manages USD 2.7B. One of the main reasons limiting growth in the crypto hedge fund market is the lack of infrastructure and a compliant framework to allow institutional money to access high alpha and beta. As one of the pioneers in this field, BBShares has built a holistic legal framework and an in-house asset management system known as MatrixONE. The platform allows all assets to be managed seamlessly and service providers such as fund admin, auditors and custodians can access to the platform via an API,” said Jett Li, Chief Investment Officer of BBShares.
BBShares has adopted a traditional approach in terms of compliance, legal and security standards in managing funds for qualified investors. The experienced team comprised of wall street veterans from JP Morgan, Citibank, Credit Suisse, Standard Chartered Bank and Merrill Lynch, who saw the opportunity for an institutionalization approach to digital asset investing.
In order to bring institutionalization to crypto hedge fund investing, BBshares provides best-in-class KYC AML checks by Vistra Singapore, monthly net asset value (NAV) statements for investors as well as audited annual reports. To ensure credibility, BBShares has appointed Kingdom Trust, a regulated financial services institution that offers custodian services and commercial insurance for alternative assets. Kingdom Trust also insures digital-currency private keys.
“The outlook to crypto assets investing remains very positive to institutional investors, and has surpassed traditional investment such as equities, bonds and gold. At BBShares, we believe in offering our clients secure access to digital asset investing. Our eco-system is developed to build trust and drive growth so as to enable institutional investors to include digital currencies in their portfolio,” added Jett.