Categories: Bitcoin Business

Fund goes all in on blockchain

Click here to view original web page at www.innovationaus.com
Patrick Bennett: Moving toward more certainty in the crypto world

Australian-based investment management firm First Digital Capital (FDC) is preparing to open its fund up to wholesale investors for the first time at the end of this month, with a goal to raise an initial $30 million, which will be used to invest in blockchain technologies.

First Digital Capital chief information officer Patrick Bennett says the fund was born out of the need for a regulated hedge fund specialising in blockchain.

“The whole crypto world is highly unregulated at the moment. It would be good for the exchanges if the regulator in Australia took a view as what constitutes as security and general governance around it,” Mr Bennett said.

“My view is that the crypto world cannot continue to operate like the wild west; it needs to be more regulated once it becomes mainstream. That will take time and it goes against some of the initial thoughts of the technology being completed middleman-free.

“There will be different ways to do it, but for us the sooner regulation comes in the better. It will bring a lot more comfort to investors and therefore encourage people to invest in the space.”

FDC’s initial targets for the fund won’t be Australian investors. Instead, FDC will launch in Singapore and Hong Kong. Mr Bennett explained how in comparison to investors overseas, Australians are more risk averse.

“We hosted a number of roadshows recently but the feeling we got from Australian wholesale investors was yes, they were interested but they also wanted to wait and see. They’re fairly conservative,” he says.

However, Mr Bennett doesn’t blame Australian investors, acknowledging the sector has been overshadowed in recent years by the “hysteria and euphoria that was around bitcoin in 2017 and that’s been dampened in 2018 when the whole bitcoin collapse happened. It lost 80 per cent of its value, and a lot of other coins and tokens also lost nearly 90 per cent of their value.”

“People have been a bit weary. This has been driven by retail investors. When you start hearing hairdressers and taxi drivers telling you how much they’re making out of bitcoin, it’s time to get worried,” Mr Bennett said.

“But that has been masking the uptake of institutional market. We are starting to see large companies get involved because they see it as a quicker, cheaper and faster way of exchange.”

To minimise volatility for investors, FDC has set up its portal fund using a “fund of funds” structure. Raised capital will be spread between different line managers and then invested in other hedge funds that specialise in digital assets and blockchain technologies.

These will include crypto assets, such as bitcoin or technologies and protocols that companies are developing that could drive the whole development of the blockchain space.

“What we’re looking to do is avoid the peaks and then the collapse afterwards. We want a far smoother journey,” Mr Bennett said.

“Our idea is to make money when it’s there to be made but not to lose it. This will deliver far more consistent returns.”

But FDC are no rookies at this. Between the team, they have decades of combined experience in investment and blockchain. On their advisory committee is blockchain expert and former Wall Street Journal columnist Michael Casey and director of IBM’s Blockchain Labs Nitin Guar.

Mr Bennett is a specialist in investment research and portfolio management having headed up positions in HSBC and Colonial First State. The company’s chief executive Deryck Graham meanwhile was co-founder of QHL, dubbed as “Australia’s largest composited aerospace defence contractor”.

While the initial target for FDC’s portal fund will be Asia, Mr Bennett is confident that it will be open to Australian investors too – and eventually pure retail investors.

“That being said it’s a Cayman Island hedge fund, so if there’s an Australian investor who wants to invest their money now, we’re also happy to take their money too.”

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin Sheds $10,000 Support Again Ahead of Bakkt Launch

Ahead of the launch of Bakkt’s Bitcoin (BTC) futures, bears have continued to assert control over the cryptocurrency market. Ouch.As… Read More

1 hour ago

Bitcoin ‘Messiah’ Goes To War With The ‘Deep State’

One of bitcoin and crypto's oldest proponents, the founder and former chief executive of U.S. online retailer Overstock, Patrick Byrne,… Read More

1 hour ago

The Specs Behind Bitcoin’s Lightning Pass Their First ‘Formal’ Security Test

A pair of researchers have released the results of a formal verification of bitcoin’s lightning network.Lightning is new(ish), experimental, and… Read More

1 hour ago

Deja Vu 2000 Or Flashback 2007? (Part 2)

“The experience in Japan, Europe, or even the US, is that once you get into a near-zero interest-rate regime, it’s… Read More

7 hours ago

Blockchain Industry to Generate $16 Billion Revenue by 2024

Often considered as a nascent technology, blockchain was introduced about a decade ago. Although the technology has not been around… Read More

7 hours ago

Kate Winslet takes action against Bitcoin scammers who used her image

Kate Winslet has spoken out after her image was used to advertise a Bitcoin scam Movie star Kate Winslet is… Read More

7 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More