Bitcoin Forum

I don't understand why hedge funds have so little (none?) exposure to bitcoin.  What are the principal obstacles?

How do you know that hedge funds arnt holding bitcoin ? 

Here's an article form Coindesk identifying at least 6 hedge funds that are interested in bitcoin -> http://www.coindesk.com/6-new-hedge-funds-seeking-bitcoin-returns/ (http://www.coindesk.com/6-new-hedge-funds-seeking-bitcoin-returns/). The catch is that each of these funds is a bitcoin-focused hedge fund...so...of course they would invest in it.

As for other mainstream hedge funds, bitcoin speculation is tough. It can't be used as a reliable hedge due to the volatility. It can be the focus investment because it's damn near impossible to predict price direction 3, 6, 12 months out.

One final thought - bitcoin isn't difficult for anyone to own. And people that invest in hedge funds are getting assets, strategy, or contracts are that are relatively difficult for regular folks to buy and own.

There are numerous types of funds are targeting bitcoin investments. From banking sector to individuals, everybody got attracted toward investing into bitcoins.

In my office, some people are forming a small mutual fund kind of scheme through monthly investing options. This helps even non bitcoin adopter too are getting opportunities to invest into bitcoins.

Maybe, it's showed the difficulty about maintaining of investment management, so value achieve above the average and the customer usually show impatience when they got poor investment performance. But still they have own Policy?

Coindesk has list of six hedgefund that are trading bitcoin. If coindesk claims this then possibly hedgefund also deals with bitcoin. Though not all hedgefund are into bitcoins that is why you thought they are not into bitcoins. If they trade that simply means the hedgefund also hold a huge amount of bitcoin at their disposal, otherwise if they dont have a bitcoin stock then they will no longer trade.

They don't understand and don't trust Bitcoin. They are too conservative

Because it's volatile and insecure to those who don't know what they're doing. They thrive of fiat currency anyways, I doubt they'd give Bitcoin any thought.

Because they can bankrupt, it is too risky to invest in bitcoin especially if the funds aren't yours and especially investing in bitcoin.

With borrowed money I wouldn't risk in bitcoin unless there will be a fast dump and pump and you get fast profit but this happens very rare.

The obstacle of this can be the price stability of bitcoin which is affected by many other factors.

Actually, the cryptocurrency Bitcoin being increasingly mentioned alongside Gold as a “portfolio staple” as Bitcoin nears parity with the world’s most popular precious metal.

Additionally, with the rise of Bitcoin-related financial instruments such as IRAs and ETFs, investing in Bitcoin will undoubtedly become much easier for traditional investors with time.

I can understand why hedge funds don't hold Bitcoin. It is difficult to buy in high volumes and hard to secure for a lay person (hell a lot of non-lay persons have lost a lot of coins!)
Why they don't invest in Bitcoin backed ETFs must be geographical, i.e. those that are available are somewhere else, and they don't exist where they are.

I do think the Winklevoss ETF would be a good thing for just this reason, but we really don't need paper Bitcoins either, GLD and SLV have destroyed physical gold and silver.

Most funds are managed by old people, old people are too stupid to understand bitcoin, so they stick to the more traditional options, just look at guys like warren buffet. All of those guys got millionaire funds and they still own 0 BTC.

You could at least spell the man's name properly, and calling him a "M" illionaire is pretty hilarious too....
I guess if he was as smart as you, he could understand bitcoins   :D

These are my assumptions
First is the high volatility. can you imagine your portfolio dropping 25-30% in a day. Though this has reduced in recent times
Second is liquidity. These guys are millionaire if not billionaire any buy can move the market significantly likewise sell unlike the traditional market that is very liquid

hedge funds are a controlled banking/investing instrument.  our crypto investment packages use hedge fund techniques, but you are asking why bitcoin is not being included in the investment world and the answer is simple, the SEC.  there are rules and regs that control these things.  that is like asking why BTC is not listed on nasdaq. 

this is assuming that you are talking about investment fund trading, like you saw on the movie Wall Street?

the term "hedge" fund refers to a fund that has stocks or investments in it that are very certain to retain value, along with other investments.  the guaranteed value items are there to "hedge" against loss in the more aggressive items.

imagine our crypto funds, we have at least 50% BTC in the because the value is going to hold and if the wild alt coins included lose value or dump, the btc is there to protect the "fund" value

They're are already a few funds who are in bitcoin and others who are trying to acquire large amounts of it

Obviously these numbers will go through the roof when all the etf's and financial products launch on Wall Street, Nasdaq, bats etc

 https://youtu.be/G6iIhooV8UY

You should help these young ones, by providing the proper answer to their statements.  ;) His name is Warren Edward Buffett and he is

currently worth 73.9 billion USD (2017) - Not bad for a stupid old man... right? He was ranked as the world's wealthiest person in 2008 and

as the second wealthiest in 2016. < He has done this, without the help of Bitcoin > I have read some books on the fella, and he is pretty

smart for a old guy/billionaire   ;)

OP, there are many Hedge funds out there as listed by some posters already, but the big one will be coming soon. { Winklevoss twins }

Watch this space. http://www.coindesk.com/bitcoin-etf-anticipation-winklevoss-trust-deadline/

The market cap of bitcoin is too small for them. Also some of the exchanges bitcoin is traded on are either too small or too shady.

They are mostly waiting for the Winklevii ETF to get approved by the SEC - once that gets the green light, a whole bunch of other investments into bitcoin will be deemed safe as well.

that's a correlation you don't hear everyday.  the market cap for a virtual currency.  is the universe turning inside out? lol, i know there is capital backing the bitcoin project as a whole, but i laugh when i hear this every time.  i imagine sitting down to play Monopoly and someone announcing the Monopoly money is backed up this game by $25 real cash.

Bitcoin is still new in the world, there are no many people who know about bitcoin
there are no people who use it on real life,
investing in bitcoins is mean taking high risk although it will make high profits
but for the investors they always calculating risk and profits.

i think the main reason is that they are not holding bitcoin is that it is too expensive in its cost and it is a online currency and difficult to understand by a common man and most of the people not trust it like they trust in sa real money but i think in future as bitcoin progress it will be easy to use and used by the common peoples.......

There is no paper trail.  What if they invested $100 million and it went missing? Yes, you can do things but that is both a good and bad thing about bitcoin.  Even overstock sold off most of their bitcoin holdings I think as what do you tell shareholders if they go missing or the price drops.   You are not producing goods with bitcoin,  it is not capital.  You are only making a bet on inflation and whether use will grow.