Investors turn to crypto funds, companies as Russia-Ukraine crisis escalates

Representations of cryptocurrencies including Bitcoin, Dash, Ethereum, Ripple and Litecoin are seen in this illustration picture taken June 2, 2021. REUTERS/Florence Lo/Illustration NEW YORK, March 14 ( Reuters ) – ball-shaped investors are scooping up stakes in cryptocurrency funds and companies, as they seek exposure to a sector many believe could withstand the fallout from the Russia-Ukraine conflict. research firm Fundstrat, in its latest bill to clients, said venture capital ( VC ) buyers invested around $ 4 billion in the crypto space in the last three weeks of February. VCs poured in another $ 400 million to start-ups in the sector concluding week, datum showed. The VC investment is consistent with broad weekly inflows. Since the begin of the year, weekly investments in the diligence have been averaging anywhere between $ 800 million to about $ 2 billion, Fundstrat data showed.

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New crypto funds besides raised closely $ 3 billion over the last two weeks as of Friday, the most thus far this class. “ The conflict in Ukraine has weaponized our fiscal and digital economy and in truth accelerated blockchain borrowing, ” said Paul Hsu, fall through and chief executive military officer of Decasonic, a $ 50-million hybrid fund invest in both digital assets and venture capital. He added that there ‘s need of up to $ 200 million to invest in his store. “ We are seeing a re-allocation to crypto and blockchain away from real estate and bond funds, for case, because of higher interest rates. I ‘ve seen this with my funds but unfortunately, because I ‘m closed-end, I can not admit more funds nor investors, ” Hsu said. Refinitiv Lipper data showed that U.S. investors pulled a net $ 7.8 billion out of chemical bond funds in the workweek to March 9. read more very estate funds saw net outflows of $ 707 million in the lapp period, after posting outflows deserving $ 1.15 billion the previous week. read more “ Crypto native companies are still raising at very high valuations and many fund rounds are silent oversubscribed, ” said George Melka, chief administrator military officer at crypto broke SFOX. “ In fact, crypto startup valuations are probably the highest I ‘ve seen. ” Bain Capital Ventures, a whole of private fairness fast Bain Capital, for example, announced early last week that it is launching a $ 560 million fund focused entirely on crypto-related investment. Crypto assets have outperformed traditional risk-on assets such as stocks during the crisis. Bitcoin rose 12.2 % last month, while ether gained 8.8 %. Since bottoming on Feb. 24 when Russia invaded Ukraine, the digital currencies have gained 14.5 % and 13.5 %, respectively, while the S & P 500 ( .SPX ) rose just 3.2 %.

capital INFLOWS, HEDGE FUND RETURNS Crypto investment products and funds saw $ 163 million in new institutional money in the two weeks to March 4, while inflows into blockchain equities totaled about $ 15.6 million, according to data from asset coach CoinShares. The inflows of $ 127 million were the largest seen so far this year. Flows into the crypto sector turned cocksure in late January, after five straight weeks of outflows, CoinShares data showed. Crypto fund returns have stabilized. The BarclayHedge cryptocurrency traders index was toss off at 1.5 % for the calendar month of February, according to data posted on Monday, with 39 funds reporting or about 43 % of the total crypto asset managers it tracks. In January the index fell about 13 % and in December it fell 10 %. “ There ‘s very no panic even with the Ukraine conflict, ” said Joe DiPasquale, head executive officer at BitBull Capital, which manages a crypto fund of funds and two hedge funds. BitBull ‘s two hedge funds, which employ market-neutral strategies, were up on the year, DiPasquale said, benefiting from the recovery of bitcoin and quintessence in the month of February. “ People are starting funds, encouraged by the appreciation in prices over the last couple of years, ” he said.

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Reporting by Gertrude Chavez-Dreyfuss; Editing by Alden Bentley and Nick Zieminski

Our Standards : The Thomson Reuters Trust Principles .

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