According to Bloomberg, Israel’s first dedicated cryptocurrency investment company Silver Castle Ltd. Launched two new crypto funds for institutions this month. The firm expects to have 50 million dollars under management by the end of the year.
Bitcoin had a really bad year, where it faced a loss of more than 70 percent in value. The launch that comes right after this shows that this isn’t enough to stop Silver Castle. There are over 370 crypto funds managing 10 billion dollars, which shows that the global competition is really fierce.
Eli Mizroch, CEO of Silver Castle said:
“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 continued by saying that he underscored the importance of the country’s dynamic blockchain ecosystem; Israel has seen an over 200 percent increase in the number of local blockchain companies since 2015, according to data from Startup Nation Central, an NGO dedicated to the local innovation space.
One of the funds in based on an algorithmic trading system that is both long and short momentum driven and picks the five biggest coins by market capitalization.
According to Mizroch, they have been using it in-house and the fund achieved “high double-digit numbers”.
The other fund is fully invested, automated and offers a basket of the top 10 coins according to an algorithm. Also, it has been said that there will be a third fund launching before the end of the year, which will focus on ICOs.
The company’s lineup includes Zvi Ziv, former chief executive officer of Bank Hapoalim Ltd., who said that there is a lot of potential in using blockchain and everything is going to try and move there. He added that he believes that the biggest potential in the financial world lies in blockchain.
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