New Cryptocurrency Hedge Fund Aims For $200-million Funding

A new cryptocurrency hedge fund is aiming to raise up to $200 million for investment in currencies like bitcoin, ether and litecoin, according to a filing with the Securities and Exchange Commission.

Cryptocurrency Fund LP disclosed their intentions in a Form D submission to the SEC, the body responsible for approving the listing of exchange-traded investment vehicles in the U.S., among other things.

The fund will have a minimum investment threshold of $100,000, and will be open only to those investors with a certified net worth of over $5 million.

The fund is the latest in a series of high-profile funds planning to deal in cryptocurrency, and will become the next fund to be put to the SEC test.

With several funds thus far having sought approval from the SEC, Cryptocurrency Fund LP is well timed. A similar fund recently launched targeting ICO investments, seeking up to $100 million in funding for its objectives, with roughly $30 million in funding already secured.

Registered in Las Vegas, Nevada, the fund has so far kept a somewhat lower profile than others in the sector, with little in the way of detail known about the fund’s intentions and structures.

While an investment white paper is available for approved parties, it is yet to be made publicly available, contingent on the relevant approvals being granted by the SEC.

Cryptocurrency investments give speculators the opportunity to capitalize on volatile price swings in underlying digital currency markets like bitcoin and ether.

While these markets continue to grow and mature, they remain among the most volatile in the world, with rapid movements in both directions commonplace, even within a single 24-hour period.

Nevertheless, for some investors in cryptocurrencies, the returns can be substantial, and some funds have projected expected investment returns at over 70 percent per year.

While the details of the fund will be dissected by investors and analysts in due course, it remains largely under wraps, as a result of pending approvals from both the SEC and the National Futures Associates, a self-regulatory body within the futures investment sector.