The Israeli cryptocurrency scene is very vibrant. However, there is a dearth of offerings for traders who might want to indulge in the sector. In this light, Silver Castle launched digital asset funds for institutional investors interested in the trade.
Silver Castle Ltd. is Israel’s first dedicated cryptocurrency investment firm for institutional and accredited investors. In particular, the firm launched two funds that will deliver the services. The firm expects to have $50 million under management by the end of the year.
Number of digital asset funds for institutional investors on the rise
According to Eli Mizroch, Chief Executive Officer of Silver Castle, they are ready for the task ahead of them. “We spent close to a year building robust infrastructure for managing other people’s money at the level of institutional grade with very, very high security,” he said.
Research indicates that the crypto fund sector is ballooning. There are approximately 370 such firms which collectively manage about $10 billion in digital assets. The figure is quite huge for the short period the sector has been around.
According to Silver Castle, the firm manages most of its funds based on proprietary algorithms. In particular, the algorithms track short and long-term market momentum. Interestingly, the algorithms already boast high returns since first deployment.
In addition, the algorithms select the five largest cryptocurrencies in terms of market capitalization. On selecting the cryptos, the algorithms track their trades and offer important insight into their behavior.
Interestingly, the automation of fund management is important in that it avoids the trap of human error in judgement. Particularly, a KPMG report indicates that the crypto market has an excess of speculative investors. In light of this, the proprietary algorithms become very crucial. Or they become stumbling blocks.
Analysts doubt that the timing of the launch of the digital asset funds for institutional investors is good. This is due to the continued tanking of the price of most digital currencies.
According to the latest price analysis, Bitcoin is persistently on its back foot. Data on CoinMarketCap indicates that the price is still hovering well below the $5000 mark.