- Israel’s first ever dedicated cryptocurrency investment firm, Silver Castle, launched 2 crypto funds, which will be offered to institutional investors
- The firm is expecting to have $50 million under management by the end 2018
- The new business venture serves as a landmark event for the whole Israeli market as it involves industry leaders.
Israel’s first dedicated cryptocurrency investment firm designed for institutional and accredited investors has launched 2 funds this month. The company is called Silver Castle Ltd., and they are expecting to have $50 million under management by the end of this year.
Optimistic despite the current market
This launch happened despite Bitcoin experiencing an over 70 percent drop from a record high in the last quarter of 2017. Today, the firm has 370 funds and they are managing as much as $10 billion in assets. This is based on the Autonomous Research. To quote their Chief Executive Officer, Eli Mizroch said.
“We spent close to a year building robust infrastructure for managing other people’s money at the level of institutional grade with very, very high security.”
Although most blue chip players became less active about the cryptocurrency market this year, there are also those who took advantage of the bear market such as Fidelity Investments. This mutual fund company took a plunge, and decided to begin offering their own digital-asset services to businesses. These businesses include hedge funds, family offices, and trading firms.
The founding partner of the Israeli Blockchain Association, Gadi Isaev, has described the Silver Castle launch of new business venture as a landmark event for the whole Israeli market. According to him, the team involved is composed of leaders of the Israeli financial industry as well as its pioneers.
Mizroch also said that Israel’s blockchain ecosystem is crucial in the group’s building of the investment house. Based on the Startup Nation Central (an industry promoter), the industry today has 129 company. This number has greatly improved from 42 back in 2015. There are 40 ICOs or initial coin offerings that have come out of Israel in the past 3 years.
The first fund from Silver Castle is both long as well as short momentum driven. This was according to the algorithmic trading system, which picks 5 of the largest coins by market capitalization. For a year, this trading system has been used, and the portfolio has received a huge double-digits returns in dollar terms. This happened despite Bitcoin’s plunge this year.