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

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

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KB Crypto hedge fund
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  • KB Crypto is an unconventional hedge fund, combining BTC with other asset classes


  • Retirement giant Fidelity Investments’ announcement of BTC in a 401(k) plan shines spotlight on Bitcoin’s popularity


  • KB Crypto uses funds collected in BTC to derive returns from avenues like commodities

Fidelity Investments, a Boston-based financial corporation, which recently launched a product to marry Bitcoin (BTC) and 401(k), estimates that every fourth American has invested in crypto assets in personal capacity. Canada might also warm up to this idea, considering it was world’s first country to launch Bitcoin ETF in 2021.

And as Fidelity launches its new product, it highlights the importance of a collective approach when it comes to investing in Bitcoin. Hedge funds -- which have long been a beacon of hope for pooled investments -- now need a shift toward new realities. In fact, Reuters clubs cryptoassets under its ‘Future of Money’ category.

KB Crypto recognizes the need of the hour

KB Crypto, a Canadian hedge fund, claims to be one of the first movers to have brought together BTC and hedge fund investments.

A financial technology (fintech) entity, with its proprietary algorithm to invest in assets, KB Crypto has a distinct business model. Investors pool their BTC holdings, which KB Crypto’s fund managers park in wide-ranging asset classes, including commodities, indices, metals, and foreign currency assets. The pooled funds are parked strategically keeping the short-term return and liquidity features of hedge fund investments intact.

Also read: Honesty and transparency: The bedrock of KB Crypto’s philosophy

Now that individual investors are participating in the cryptoverse -- regardless of many experts warning against risks of price volatility – hedge funds that can bring in financial expertise and understanding of variable return asset class – are considered to be the best partners, as per a school of thought. KB Crypto’s primary focus is to pool BTC funds in order to derive maximum returns from unrelated investment classes like commodities.

This approach, KB Crypto claims, adds risk diversification, besides exploring options that can stand the test of time when the global markets are reeling from a downward pressure in the wake of steeper-than-expected interest rate hikes and geopolitical issues in Eastern Europe.

Image source: Screen Grab KB Crypto PPT

Also read: What's in Canada Budget 2022 for cryptocurrency enthusiasts?

What sets KB Crypto apart from other hedge funds?

Many hedge funds use complex trading practices with a target of appreciating the pooled funds. With multiple hedge funds employing the same trading techniques, KB Crypto is betting on its proprietary mechanism to identify the best asset class/classes.

Separately, the HODL (hold on for dear life) sentiment remains strong among crypto enthusiasts. But the idle BTC holding can be used to derive short-term returns, instead of just waiting for capital gains. BTC is yet to perform well this year, and some are of the view that it may be a good idea to consider options that diversify returns using investments in uncorrelated assets.

Also read: Deciphering debate around Bitcoin as reserve currency

Bitcoin price gain between 2020 and 2022

Data provided by CoinMarketCap.com

The great Bitcoin revolution

From big corporations like Tesla and MicroStrategy holding investments in BTC to ETFs providing an indirect exposure to Bitcoin, institutional interest in this asset has grown manifold over the past couple of years. The latest addition is Fidelity Investments, which has included Bitcoin in 410(k) plan.

KB Crypto comes with its own unique offerings as an unconventional hedge fund, which uses BTC funds to explore other lucrative opportunities.

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