The burgeoning world of crypto hedge funds, a $ 2 billion industry, gets a bit more transparent.
In an effort to alleviate the myriad fears traditional crypto investors have, Strix Leviathan, a cryptocurrency-focused hedge fund backed by NFL legend Joe Montana, released its Octopus Investors platform earlier this month. The platform introduced a revolutionary level of transparency and understanding of how the fund operates and aims to open the door to a growing pool of risk-averse investors.
Hedge funds are designed to provide a more stable return than the broad market for investors looking to protect their capital. That means they tend to outperform when markets shrink, but they can also lag behind the returns of other types of funds (or just buy an asset) in good times.
Strix Leviathan raised $ 1.6 million in one Seed round 2018 directed by Joe Montana’s Liquid 2 Ventures VC fund. The triple Superbowl MVP called the Octopus investor’s experience ‘unparalleled’ in a press statement. TechCrunch founder Michael Arrington also praised the Strix Leviathan’s commitment to transparency between crypto-focused hedge funds.
Octopus Investors gives fund clients real-time insight into the fund’s historical performance, benchmark analysis and a direct link to investor relations. Price and news feeds are also included, along with commentary directly from the portfolio manager. The tools are unique in the world of hedge funds, where many investors limit themselves to monthly statements and meetings by appointment.
“Crypto investment offers investors an irresistible opportunity, but remains a difficult pill to swallow [for some] because of his reputation characterized by bad actors, hacks, ponzi schemes, fake trading and more, ”said Matthew Heater, investor relations manager at Strix Leviathan, Decrypt.
“Strix Leviathan believed that building a successful long-term business in this space requires a commitment to trust and has always believed they gain trust through security, compliance and transparency.”
Strix Leviathan asset management accounts are secured by a crypto custody service Anchorage, a founding member from the Libra Association. Strix Leviathan trades long and short directional positions between the leading cryptocurrencies by market capitalization using algorithmic momentum, trend following and pair trading strategies.