Investors and financial advisors will be able to gain new insights into hedge funds that invest in blockchain technologies and cryptocurrencies.
Hedge Fund Research has announced two new indexes focused on the fast-growing sectors, the first indexes to do so.
"Investor interest in funds offering exposure to Blockchain technologies and Cryptocurrencies has surged in recent months as these innovations continue to move towards the mainstream and generate compelling opportunities for investors, portfolio managers, traders and other market participants," stated Kenneth J. Heinz, President of HFR.
The HFR Blockchain Composite Index includes funds that invest directly in blockchain technology, cryptocurrency or other emerging blockchain innovations. It includes data from 2015 onwards.
The HFR Cryptocurrency Index is a sub-strategy index of the Blockchain Composite and includes all funds which invest and trade in cryptocurrency directly, typically generating performance through an actively managed portfolio of cryptocurrency assets, including Bitcoin, Ethereum, Litecoin, Ripple and many other coins, as well as new initial coin offerings (ICOs).
"While the recent performance has been exciting, trading and investing in these evolving areas requires specialized expertise and involves substantial volatility and risks, both real and structural” added Heinz. “Taking these risks into consideration, it is likely that the evolving fundamental disintermediation of traditional payment processing associated with blockchain and cryptocurrencies will continue to grow in an absolute sense and as a component of hedge fund exposures."
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