An actively managed cryptocurrency solution has been launched by deVere Group. The company has founded the deVere Digital Asset Funds, a suite of digital currency solutions for experienced investors, in association with Dalma Capital Management Limited, a hedge fund manager in the Dubai International Financial Centre.
Nigel Green, founder and CEO of deVere Group, says that cryptocurrencies are now undeniably part of mainstream finance. Green believes that crypto continues to gain traction for both retail and institutional investors increasing demand with “mass adoption on the horizon.”
“These actively managed cryptocurrency solutions address growing demand by clients who want the potential associated benefits of exposure to the digital currency sector – which typically include portfolio diversification and decent returns – but with reduced volatility for which the market is known,” said Green.
Green states that the deVere Digital Asset solution will invest in a diversified portfolio of digital assets via algorithmic trading over different platforms. These assets include both crypto and the exchanges they trade. Green believes there will be arbitrage opportunities as well.
“Through a ground-breaking algorithmic system, when the price of one asset, for instance Bitcoin or Ethereum, is greater on one platform than on another, the opportunity is identified to generate profit from the difference of price across platforms. These trades, referred to as arbitrage, allow profits to be generated with little or no directional market risk.”
Partner Zachary Cefaratti, CEO of Dalma Capital, believes there are opportunities due to “durable inefficiencies” in the crypto market. These inefficiencies can enable “uncorrelated excess returns through systematic relative value arbitrage, momentum trading and mean-reversion strategies.”
“Crypto Markets have created opportunities that we have not seen in conventional markets for decades. Arbitrage opportunities abound – 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,” stated Cefaratti.
The deVere Digital Asset Platform is to be showcased at the forthcoming Alternative Investment Management (AIM) Summit taking place in Dubai this month.
Green predicts their solution will be a market leading investment solution in the digital currency space.
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