From Bitcoin to Altcoins: Asset Allocation Strategies in Crypto Hedge Funds

Crypto hedge funds are investment vehicles that pool capital from accredited investors to participate in the cryptocurrency markets. These funds intention to maximize returns through numerous strategies, together with long-term holdings, active trading, arbitrage, and initial coin offerings (ICOs). Unlike traditional hedge funds, which may need a broad mandate, crypto hedge funds specialize within the complexities and dynamics of crypto markets.Bitcoin: The Anchor AssetDespite the proliferation of cryptocurrencies, Bitcoin remains the bedrock of most crypto hedge fund portfolios. Its market leadership, liquidity, and status as a digital gold customary make it a relatively safer and more stable investment within the…