Ex-Deutsche Bank Trader founds crypto currency hedge fund
A new crypto currency hedge fund called Circuit Capital will be launched in January 2019. The fund, based in San Francisco and Singapore, has four founders, including a former Deutsche Bank AG trader and a private equity analyst. A total of 100 million US dollars in assets are initially to be collected.
The 2018 bear market hides the increasing adaptation of crypto currencies by consumers and investors. This is the view of the four founders of Circuit Capital, a newly formed crypto currency hedge fund based in San Francisco and Singapore, which will be officially launched in January 2019. The four founders are Silicon Valley Venture Capitalists, a former Deutsche Bank AG trader and a private equity analyst. According to a Bloomberg report, Eugene Ng, former Deutsche Bank derivatives trader and co-founder of Circuit, said:
Notwithstanding what happens with the prices, we see a growing acceptance and many people are looking for a scaling of crypto companies. We begin to see how talent enters this space and how institutional infrastructure develops.
In order to estimate these developments, Circuit Capital is developing an index which uses 10 different indicators, including
- transaction volume
- Number of active Crypto Wallets
- hash rate
- Web search for articles about crypto
- Recruitment of technology and financial experts in the industry
judged. Ng, a former Deutsche Bank derivatives trader, will oversee the fund’s Asian business with former Tikehau Capital analyst Aaron Tay. Circuit’s US activities are led by two former equity analysts: Bo Nam and Richard Jahnke.
Circuit plans to collect $30 million by its launch in the first quarter and increase assets to over $100 million, said Nam. While that’s a fraction of the assets held by macro hedge funds, it’s an ambitious amount for the crypto market, he said.
Attresses Horowitz launched earlier this year its 300 million dollar Crypto Fund a16z. Pantera, founded by former Goldman Sachs trader Dan Morehead, is also on track to raise 100 million dollars from its 175 million dollar target for its third fund despite the market’s bear market.
