How KB Crypto differentiates itself from traditional hedge funds?

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How KB Crypto differentiates itself from traditional hedge funds?

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 How KB Crypto differentiates itself from traditional hedge funds?
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  • More Canadians are warming up to the idea of investing in Bitcoin, reveals a survey
  • KB Crypto stands out as compared to its peers, thanks to its unique prudent strategy
  • KB crypto is backed by a strong team

A survey by leading market research and consulting firm, Ipsos, shines a light on what people in Canada and elsewhere think when it comes to investing in Bitcoin. Published earlier this month, it reveals that 17% of Canadians are likely to park money in BTC as a speculative short-term investment asset. The figure reaches 19% when Bitcoin is viewed as a speculative long-term investment asset.

Although the same survey reveals that Americans are far more likely than Canadians to warm up to this asset class, 17% is no mean number. Additionally, 14% of Canadians, it discovers, would like to use Bitcoin to avoid banking fees on international remittances.

Where does KB Crypto fit in this scheme of things? Let’s find out.

KB Crypto’s model vs. traditional funds

KB Crypto claims it is one of the early movers in Canada to have identified the potential of blockchain technology and digital currencies using this tech. Concurrently, the ability of traditional assets to create wealth is not overlooked.

What it does is turn the idle Bitcoin holding of its investors into funds to be deployed into other markets to benefit in the short-to-medium term. The investment strategy is unlike traditional players in the hedge fund industry, in which these participants usually invest funds in the already liquid fiat currency. Bitcoin, KB Crypto claims, is also a highly liquid asset -- considering it can be liquidated on a crypto exchange virtually anytime -- but since HODL (hold on for dear life) is a strong sentiment, not many holders want to settle for short-term capital gains.

Also read: What you should know about KB Crypto – Canada's leading fintech hedge fund

What can idle Bitcoin holding provide to the investor? Here, KB Crypto steps in. Fund managers of KB Crypto use the BTC holding of crypto enthusiasts to tap traditional assets like the commodity market and foreign exchange. This strategy -- backed by the company’s “proprietary software” -- paves the way for returns for all stakeholders, KB Crypto insists.

Image source: Screen Grab KB Crypto PPT

Not strategy, it’s about ‘prudent’ strategy

Deploying investors’ money in assets that have variable returns is a complex subject matter. The portfolio manager cannot afford to miss both micro-economic and macro-economic developments.

Cryptocurrencies, as the survey points out, are on the radar of a growing number of enthusiasts. This is one of the key financial developments across the globe that has everyone talking -- from politicians to regulators. Today, markets are more volatile, thanks to everything from pandemic-induced stress to the Fed and the Bank of Canada raising policy rates, which calls for a prudent investment strategy.

KB Crypto, unlike its traditional peers, claims to have worked on a service that can bring benefits of both the worlds -- traditional asset classes like commodities, and untraditional cryptos -- to the investor. This is what differentiates it from traditional hedge funds that are dragging their feet on emerging asset classes.

KB Crypto team

Thanks to the diverse team at work, KB Crypto has managed to formulate a prudent and unconventional investment strategy. It has founder Devon Edwards as the lead fund manager, with other key personnel bringing to the table deep knowledge of emerging assets and the traditional hedge fund model.

Also read: Meet the team behind Canadian fintech hedge fund, KB Crypto

The team claims to create wealth for its clients that have acknowledged the rise of blockchain and related assets using this distributed ledger tech, which might eventually pave the way for Web 3.0.

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