DeVere Group has launched an actively managed cryptocurrency investment designed to offer investors access to the cryptocurrency marketplace but with “reduced volatility”.
Speaking from his Dubai headquarters deVere Group CEO and founder Nigel Green told International Investment that he believed that cryptocurrency investments would soon be part of the mainstream, particularly after US financial giant Fidelity, amongst others, introduced its own crypto team.
DeVere Group has founded the deVere Digital Asset Funds, a suite of digital currency solutions for experienced investors, in association with Dalma Capital Management Limited, a prominent hedge fund manager in the Dubai International Financial Centre.
The launch comes just comes a day after Bitcoin, the world’s original digital currency, reached its 10th anniversary. The deVere Digital Asset Platform will be showcased at the forthcoming Alternative Investment Management (AIM) Summit taking place in Dubai on 26-27 November at the Ritz Carlton hotel.
“Cryptocurrencies are now undeniably part of mainstream finance,” said Green, pictured above. “Their momentum continues to gain traction as both retail and institutional investors increasingly value the need and demand for digital, global currencies in today’s ever-more digitalised and globalised world.
“The crypto market continues to expand considerably, with mass adoption on the horizon. These actively managed cryptocurrency solutions address growing demand by clients who want the potential associated benefits of exposure to the digital currency sector – which typically include portfolio diversification and decent returns – but with reduced volatility for which the market is known.”
Green explained that new product will invest in a “diversified portfolio of digital assets” via algorithmic trading over different platforms – including crypto-currency exchanges and OTC markets – as well as what he calls “arbitrage opportunities”.
“Through a ground-breaking algorithmic system, when the price of one asset, for instance Bitcoin or Ethereum, is greater on one platform than on another, the opportunity is identified to generate profit from the difference of price across platforms,” said Green. “These trades, referred to as arbitrage, allow profits to be generated with little or no directional market risk.”
Zachary Cefaratti, CEO of Dalma Capital, added: “Crypto Asset Markets abound with durable inefficiencies – creating opportunities for hedge funds to generate uncorrelated excess returns through systematic relative value arbitrage, momentum trading and mean-reversion strategies.”
“Crypto Markets have created opportunities that we have not seen in conventional markets for decades. Arbitrage opportunities abound – the prices of the top 25 crypto assets vary across over 400 liquidity venues. The ability to trade long and short allows profit opportunities regardless of market direction.”
Green told International Investment that he was confident that due to the company’s “custom-developed platform”, which analyses market data and suggests rebalancing that’s best suited for the current market, that the product will be a “market leading” investment solution in the digital currency space.
Gary Robinson was reporting direct from Dubai.
Keep reading International Investment for a series of exclusive video interviews in the coming weeks with Nigel Green on the company’s plans for the rest of 2018 and beyond, its growing importance within the Middle East and a special report on technology.