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

Be the First to Comment Read
Sponsored

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

More on:
KB Crypto hedge fund
Image source: © Designer491 | Megapixl.com

Highlights

  • 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.

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK