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Hedge Fund Trading 50 Digital Assets Makes 76% Returns in 2021
According to reliable sources, California-based Cambrian asset management reaped about a 76% profit from virtual assets from the start of 2021 through August. The $200M financial entity trades around 50 digital assets with leverage against the assets’ volatile nature.
The hedge fund started treading the digital-asset fund landscape about three years ago. Over the years, it garnered specialists from big firms like Winton Capital. The firm projects to widen its scope enough to serve more crypto enthusiasts.
Additional Investment Assets for Investors
In a statement shared on September 22nd, Cambrian plans to launch two crypto-oriented trust funds. These new organizations will involve Bitcoin and Ethereum. Also, they will cut down the price volatility of the two cryptocurrencies for leverage traders by about 70%. The hedge fund added a unique trading model suited to read market signals like price and volume.
Users of the trust funds will incur a 4% management fee for the new Cambrian Trust. The charge is about two times higher than what Grayscale Bitcoin Trust Offers.
Cambrian plans to use more than 100 billion historical data, which dates back to 2014. Furthermore, the asset management platform applies algorithms that update within milliseconds to counter risks on a 24/7 basis. Hence, Cambrian’s systematic model managed to reduce the fluctuating values of virtual tokens by 70%.
The Funds’ New Technology
The Trust products are going to operate using a different mechanism from the Cambrian Hedge Funds. The acting Cambrian CEO, Martin Green, says that the Bitcoin and Ethereum Trusts will not use leverage or undergo net shortage.
Once the Trusts show bearish signals, Cambrian may step in to sell the assets and acquire cash. Another way that the firm hopes to fight bearish trends is by applying derivatives that hedge positions.
Interested investors can start by subscribing to the trusts, with a minimal investment of $50,000. Before beginning any public trade, the asset management company must first register with the OTC markets.
Tony Fenner, the head of Cambrian, believes that the demand for virtual assets may continue to increase. Despite the volatility issues, crypto investors still expect to find a valuable asset management source. As such, the new Cambrian Trusts help investors generate returns after moving into the world of digital assets.
Institutions Working with the Trust Product
Cambrian uses Coinbase Custody Trust Company and Anchorage Digital Bank National Association as the Trust’s custodian. Sudrania Fund Services Corporation handles the Trust’s investor subscription procedures. Chapman and Cutler LLP take up the legal counsel position while Signature Bank acts as the Trust’s bank.