Israel-based Silver Castle Ltd. is not worried over the current cryptocurrency market crash and proceeded with the launch of two crypto funds. The first dedicated digital coin Investment Company for accredited and institutional investors’ hopes to raise $50 million through the funds before the current year ends. The company is looking to grab the distributed ledger technology (DLT) ecosystem in the country.
Significantly, Silver Castle’s two funds launch comes at a time when the overall cryptocurrency market is under the bear grip, Bloomberg reports. This is quite evident when bitcoin[crypto coins=”BTC” type=”text” show=”percent”] price plunged over 70 percent in the current year itself after peaking towards close to $20,000 in December 2017. A data issued by Autonomous Research suggests that over 370 crypto funds are managing about $10 billion worth of assets currently. Most of the players from Wall Street are continued to stay on the sidelines though some of them are ready to take risks.
For instance, Fidelity Investments has indicated its interest to look at the cryptocurrency market. For this purpose, the mutual fund giant took a decision last month to start virtual-asset focused business for hedge funds, trading firms and family offices. Silver Castle’s CEO, Eli Mizroch, termed the move as “awesome for everybody.” He said that the company had spent nearly a year in creating a strong infrastructure for managing institutional grade level investments with very high security.
Mizroch believes that the blockchain ecosystem is a key factor in creating the investment infrastructure. He pointed out that the industry numbers jumped to 129 from 42 in 2015. While forty initial coin offerings (ICOs) came out from the country in the past couple of years, three of them reached among the top twenty. Israeli Blockchain Association’s founding partner, Gadi Isaev, said that the company’s launch is a landmark event for the complete market since the firm has pioneered.
The first fund is focused on long, as well as, short-term one depending on an algorithmic trading system, which picks up the five largest virtual assets in terms of market cap. The second fund is not only fully invested but also automated offering a basket of the largest ten digital coins based on the algorithm. The company believes that there is more potential is using DLT.