With the rise of cryptocurrencies, especially during the last quarter of 2017, several new financial products have emerged from this once-neglected asset class.
While products such as Bitcoin futures have made waves upon their debut, other, more non-publicized ones have launched and continued their operations with minimal publicity – on a global scale.
One such product is cryptocurrency-based investment funds, which are getting popular by each day due to the returns that can be gained from them even if the volatility poses a risk.
Now, one investment management startup is proposing to mitigate that risk, and the solution seems interesting enough to warrant further review.
Here comes CryptoLUX
Boasting a seasoned team of capital management experts from Wall Street, CryptoLUX is a cryptocurrency fund of funds that believe in the saying of “not putting all your eggs in one basket.”
The investment venture is unique in the sense that it does not only offer conventional pooled investment products – which are very popular in the cryptocurrency investment markets right now – but actually plans to manage its clients’ funds by having them invested in multiple opportunities at once.
This approach ensures that if market volatility or other factors are hindering an investment from generating the required revenue, then the effects could be managed effectively from other investments.
The fund offers multiple investment opportunities that range from typical cryptocurrency investments to blockchain-based startups and funds. By putting together this diverse portfolio, it ensures that its clients could benefit from some of the most potentially successful avenues.
The people behind the venture
As per CryptoLUX’s official introduction, the investment team behind the company has extensive experience in managing hundreds of millions of funds for their clients while working for institutions such as Morgan Stanley and Credit Suisse.
The company also has multiple advisors on board that each hold their own valuable experience, possessing expertise ranging from working with funding segments such as hedge funds to working for tech giants the likes of Google and eBay.
CryptoLUX officials recently revealed to the public that they have successfully managed to secure half of their sought capital, which stands at $100 million.
With $50 million already raised for the fund, it looks to start its full-fledged operations soon.
The fund is seeking investors that can pitch in at least $1 million to join in, and a 1 percent management fee will be levied by the fund along with a 15 percent carry on profits made from the executed investments.
The company is planning to provide more details and introduce more features of the investment opportunities by the end of February 2018.
CryptoLUX is aware of the apprehensions that investors could have while putting in capital of that scale, which is why it assures its investors that it has a propitiously devised risk management plan for its offered investments.
The company officials plan to reveal the plan in a detailed manner along with other points by next month.
It was also mentioned that, if this first round of funding goes as planned, then the company would start on another round soon, this time with the goal being, $125 million.