The hedge fund glory days are back...if you invest in cryptocurrencies. More than 100 cryptocurrency hedge funds have been launched since 2014, according to research by Autonomous Next. And, as Opalesque reported just last week, a market maker has entered the cryptocurrency space in an effort to institutionalize the system.
So it's no surprise then that hedge fund of funds are entering the market to provide broad-based access to this new group of managers.
San Francisco-based BitBull Capital, a cryptocurrency fund of funds created in 2016, has started accepting outside assets. BitBull is part of Stanford's StartX startup incubator and is managed by Joe DiPasquale, a technology entrepreneur.
Prior to BitBull, DiPasquale started ReGroup, a provider of mass notifications for enterprises. DiPasquale has been investing his own money in cryptocurrency and blockchain companies for the past four years.
DiPasquale tells Opalesque that with all of the new crypto funds launching each month, it can be difficult for investors to research every manager and a fund of funds can provide lower risk access.