Protocol Ventures Launches Fund To Hedge Other Crypto Funds

Investing, News | October 24, 2017 By:

Another sign of progress has emerged for cryptocurrency – someone is proposing a fund that will hedge other cryptocurrency funds.

Entrepreneur and venture capitalist Rick Marini wants to raise $100 million to invest in 10 crypto-focused hedge funds. The proposed Protocol Ventures has been launched with month $1 million of Marini’s own capital. Marini who head of digital innovation at Hearst Corp. and founded three technology startups.
The new fund joins approximately 84 other cryptocurrency hedge funds that have opened this year, up from 11 in 2016, according to research by Autonomous Next. Most deal with private investors, as institutional players have, so far, been reluctant to dive deeply into the highly volatile cryptocurrency world.
“The goal is to provide diversification for investors,” Marini said. “With this volatility you want to invest enough that the upside is meaningful, but not so much that it would hurt your portfolio in the case of a loss.”

Protocol Ventures has already invested in MetaStable Capital, one of the largest dedicated cryptocurrency funds, and smaller fund Neural Capital, which heavily backed ethereum.

The overall cryptocurrency market cap is now over $170 billion.