- Bitcoin serves as an underlying asset for a number of ETFs, besides being a legal tender in two countries
- Bitcoin’s dominance is formidable, and its share in the total market cap of cryptos is over 46%
- KB Crypto identified these developments to introduce a hedge fund that taps idle BTC holding to provide quick returns
Bitcoin (BTC) is more popular as compared to the other class of assets in the cryptoverse - altcoins. Altcoins or alternative coins to BTC are usually native tokens linked to a specific project. The biggest altcoin by market cap is Ether (ETH), a native medium of exchange inside Ethereum’s blockchain.
BTC is not only the most popular but also the topmost asset by value. Thousands of crypto assets exist today with CoinMarketCap tracking more than 19,700 of them. BTC alone makes over 46% of the total market cap of the cryptoverse. Ethereum’s ETH has a market cap that is less than half of BTC’s. BTC’s dominance is undisputed, which is what KB Crypto, a Canadian hedge fund, identified ahead of others.
BTC is virtually everywhere
Had BTC been a speculative tradable asset alone, no country would have adopted it as a legal form of money. At least two countries have done this so far, with El Salvador being the first, under the leadership of a Bitcoin enthusiast president Nayib Bukele. Though there are several doubts over the use of Bitcoin as a legal form of money, hiccups are expected when a change is introduced to the traditional financial system.
Separately, the S&P Dow Jones index is tracking the movement of BTC prices. As institutional investors warmed up to this asset class, new indexes were introduced to provide measurable inputs. Besides, ETFs with BTC as an underlying asset exist in Canada and the US. KB Crypto, which is based in Canada, is aware of these developments around BTC, which served as an inspiration to start the hedge fund.
Many influential entrepreneurs, including Elon Musk, Jack Dorsey and Michael Saylor are bullish on BTC with Dorsey even having commented that it could become the native currency of the internet. Not many, however, seem to have contemplated using BTC as a way to tap other markets like indices and a foreign currency. KB Crypto’s Devon Edwards has certainly attained this feat.
Devon Edwards, Founder,
KB Crypto and BTC
The hedge fund has introduced changes to the traditional idea of hedging. It is an enabler that converts the idle BTC holding of crypto enthusiasts into something that can provide short-term returns. The gains are moved into a client’s kitty, in proportion to their funds in BTC, which means the actual BTC portfolio remains intact.
The dominance of BTC is a well-acknowledged aspect of KB Crypto. This is one reason why the hedge fund is, as of now, focusing on BTC alone. As other crypto assets become as mainstream as BTC, they might make the cut. By investing BTC funds of clients in such traditional assets as indices and commodities, KB Crypto has added a small but rewarding element to BTC’s dominance.
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