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Singapore-based hedge fund engages in Bitcoin arbitrage trading, an area where many cryptocurrency investors have participated for years. In a statement made by Bloomberg, a company affiliated with Vulpes Investment Management, Kit Trading‘s specifically for the BTC arbitrage trading fund 10 million
Everything seems to be going well as the fund is on track to complete its target early next month.
As a matter of fact, Kit Trading (generally speaking, mostly to real estate ventures) , invests in real estate, private equity and life sciences.) It has a positive performance track record with returns of 17.2% and 11.4% in 2017.
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Maybe to Bitcoin, Yes to Arbitrage
Despite the success of the BTC arbitrage fund, Steve Diggle, CEO of Vulpes, has not been too caught up in this crypto frenzy it seems:
“We are agnostic. What we undoubtedly believe in is arbitrage, and the arbitrage opportunities that have been presented to us in abundance with the birth of this new asset class.”
This practice can be quite lucrative if someone has the means to trade Bitcoin arbitrage.. Bitcoin prices can fluctuate quite a lot from currency to currency depending on local inflation.. Especially in December 2017, when the value of Bitcoin peaked, this difference increased.. At that time, Bitcoin was trading at an average of $2500 higher than the normal market price compared to the rest of the world.. This particular price tag has been called “Kimchi premium” over time.
Crypto Hedge Funds Are Increasingly Reputable
In the past years, we have laughed at the idea of crypto-based hedge funds. Investment companies from the past are now trying to break into the same crypto investment practices they mocked at the time.
Crypto hedge funds really made a big impact on the market in 2017.. While there were a handful of funds (such as Polychain and MetaStable) at the beginning of last year, by the end of the same year, there were more than 95 cryptocurrency-based hedge funds operating worldwide.
Cryptocurrencies are gaining ground in the mainstream investment world and continue to attract more institutional investors day by day. The growing popularity of crypto futures and regulated crypto markets, coupled with the valuation of crypto hedge funds, has given investors the confidence they need to invest in unstable crypto assets.. Undoubtedly, it looks like we will see more crypto hedge funds throughout 2018.
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