Israel: Tel Aviv Investment Firm Silver Castle Launches Trio of Crypto Funds

Israel: Tel Aviv Investment Firm Silver Castle Launches Trio of Crypto Funds

The infrastructure for institutional investors in the crypto market continues to gain steam despite this year’s relentless bear market. Most recently, Israel-based crypto investment fund Silver Castle, which targets institutional and accredited investors, unveiled two crypto funds in November with another fund waiting in the wings and is targeting $50 million in assets under management (AUM) by year-end, according to Bloomberg.

Silver Castle Raising $50 Million for Crypto Funds

Meanwhile, the combined value of the crypto market, which is currently hovering at $170 billion, continues to reel. Bitcoin has lost nearly three-quarters of its value since last year’s peak, as crypto funds, of which there are hundreds, oversee a combined $10 billion in AUM, based on data from Autonomous Research.

“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,” Silver Castle CEO Eli Mizroch told Bloomberg.

Silver Castle’s maiden fund uses a momentum strategy for long and short investing, an approach whose in-house version has generated “high double-digit returns,” this year’s market downdraft notwithstanding.  It’s a market-cap-weighted fund that uses proprietary algorithms to select the five biggest cryptocurrencies.

There’s also a CRB-style fund that’s comprised of the leading 10 coins and whose weightings are determined by an algorithm. The investment firm plans to unveil a third fund by year-end with a focus on, dare we say, ICOs. Israel has been a first mover for crypto regulation, and according to a recent report by One Alpha and Digital Assets Group, more than $1.3 billion has been poured into Israeli blockchain companies, the lion’s share of which are “ICO related.”

Institutional Infrastructure

Silver Castle is in good company with firms like Fidelity readying its debut in the space, which is a bullish sign for Mizroch, who characterized Fidelity’s crypto push as “awesome for everybody.” Silver Castle similarly boasts talent from the traditional financial system, with alumni from Israel’s biggest bank and investment fund, Bank Hapoalim Ltd and Psagot Ofek Investment House, respectively.  Zvi Ziv, who was previously at the helm of Bank Hapoalim, stated:

Silver Castle’s ability to launch three new funds in the current market environment is a reflection of the blockchain innovation that has emerged from the country. Israel is home to more than 100 blockchain startups, up approximately threefold from 2015 levels.

Featured Image from Shutterstock

19.11.2018 / 14:20 36
Report: Crypto Funds Make up 20% of Hedge Fund Launches in 2018 Report: Crypto Funds Make up 20% of
The number of cryptocurrency hedge fund launches has increased dramatically in 2018 despite a bearish market, finds a new study. According to Crypto
Morgan Creek Launches Digital Asset Index Fund for Institutional Investors Morgan Creek Launches Digital Asset
Morgan Creek Digital, an asset management firm backed by multi-billion dollar investment advisor Morgan Creek Capital Management, has announced the
Crypto Fund Launches Projected to Hit a Record Number in 2018 Crypto Fund Launches Projected to Hit a
Despite the persistent bearish environment and unfavorable regulatory conditions in various parts of the world, the number of new crypto funds
Billionaire Investor Says Crypto Will Revive Hedge Funds Billionaire Investor Says Crypto Will
Billionaire Steven Cohen has backed a hedge fund targeted at crypto assets and blockchain-based companies by investing in it. This supports claims
Institutional Investors Remain Sidelined on Crypto Funds – Report Institutional Investors Remain
Nearly half of institutional investors, such as pension funds, wealth management offices, sovereign wealth funds, etc. aren’t sold on cryptocurrency
Cryptocurrency Hedge Funds Lose Their Luster in the Bear Market Cryptocurrency Hedge Funds Lose Their
The prolonged cryptocurrency market downturn is beginning to manifest in the once white-hot cryptocurrency hedge fund industry. It seems like only
Comments (0)
Add a comment
Comment on