U.K.-based financial consultancy firm deVere Group launched a new actively managed cryptocurrency fund, meant particularly for for experienced investors.
The crypto investment fund called deVere Digital Asset Fund is developed in partnership with Dubai-based hedge fund manager Dalma Capital Management Ltd.
The deVere Digital Asset solution will invest in a diversified portfolio of digital assets via algorithmic trading over different platforms, including crypto-currency exchanges and OTC markets, as well as arbitrage opportunities.
Arbitrage is basically buying an asset in one market and simultaneously selling it in another market at a higher price, earning risk-free profit from the temporary difference in prices. This type of trade is also not affected by market volatility, which is very prevalent in the crypto market.
deVere, which has more than $10 billion under advice and administration, uses an algorithmic system, when the price of one asset, for instance Bitcoin or Ethereum, is greater on one platform than the another, the opportunity is identified to generate profit from the difference of price across platforms.
The prices of the top 25 crypto assets vary across over 400 liquidity venues. The ability to trade long and short allows profit opportunities regardless of market direction.
The inefficiencies in the crypto asset markets creates opportunities for hedge funds to generate uncorrelated excess returns through systematic relative value arbitrage, momentum trading and mean-reversion strategies.
The deVere Digital Asset Platform is to be showcased at the forthcoming Alternative Investment Management (AIM) Summit taking place in Dubai on November 26 to 27 at the Ritz Carlton hotel.
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