deVere Group, an independent international financial consultancy, announced on Thursday that it has founded deVere Digital Asset Funds. This is a collection of solutions for virtual currencies for institutional investors, in collaboration with hedge fund manager Dalma Capital Management Limited.
The announcement comes one day after Bitcoin celebrated its 10th birthday. The digital currency was the world’s first cryptocurrency, and it is still the largest by market capitalization despite taking a hit this year.
According to the statement, the cryptocurrency solutions will be actively managed. They aim to cater to the growing demand in cryptocurrency while provide reduced volatility which the crypto market is well known for.
Nigel Green, founder and CEO of deVere Group, believes that the mass adoption of cryptocurrencies is just around the corner. He said: “Cryptocurrencies are now undeniably part of mainstream finance.”
“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.”
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The deVere Digital Asset solution will invest in a diversified portfolio of digital assets. This will be done via algorithmic trading over different platforms, including both cryptocurrency exchanges and over-the-counter markets.
When talking about the cryptocurrency solutions, Green added: “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.”
deVere Digital Asset Solution to Be Showcased at Upcoming AIM Summit
The digital asset platform will be showcased at the upcoming Alternative Investment Management (AIM) Summit. This will take place on November 26-27, 2018, at the Ritz Carlton hotel.
Speaking on the solution, Zachary Cefaratti, CEO of Dalma Capital commented: “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.
“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.”