20.10.2019

Reality Shares Will Join Increasingly Crowded Bitcoin Hedge Fund Arena, Says Source

California-based asset manager Reality Shares has become the latest competitor in the Bitcoin hedge fund space, an anonymous source told Business Insider August 15.

Reality Shares, which became known in the cryptocurrency space this year after launching the first Chinese blockchain ETF in June, has reportedly already attracted $25 million for the fund.

Capped at $100 million, the multi-strategy fund would “be a mix of arbitrage, venture, and directional strategies,” the unnamed person “familiar with the firm’s plan” told the publication.

The 2018 bear market in cryptocurrencies has made life difficult for hedge fund operators, which number over 360 as of August.

As Cointelegraph reported previously, industry commentators have raised concerns that continued market suppression would lead to the closure of over 10 percent of said hedge funds by next year.

“People are able to leverage good returns last year to try to raise money this year, but this year is going to be different,” fund investor Rick Marini told Bloomberg about the downturn in April.

Venture capitalist Spencer Bogart meanwhile told CNBC in late June that hedge fund activity could in fact “artificially” lower Bitcoin prices.

Should Reality Shares raise the full $100 million amount, its fund would rival the only 28 that have passed the figure.


Japanese social messaging app LINE announced the creation of a $10 million blockchain venture fund Wednesday, August 15, as part of its expansion into the cryptocurrency market.

Launched via Hong Kong-based subsidiary unblock corp., the fund contains funds from fellow LINE sister outfit LVC Corporation.

“Additionally, unblock ventures’ token fund is expected to expand in the future, according to the growth of the blockchain market,” the company commented in a press release, adding:

“By launching this new corporate token fund, LINE is aiming to boost the development and adoption of cryptocurrencies and blockchain technology.”

The move, it claims, makes LINE “one of the first publicly traded corporations to formalize token investments through a corporate fund.”

The Japanese giant has pressed ahead with cryptocurrency integration in 2018. Launching unblock in April, the platform’s cryptocurrency exchange BITBOX subsequently debuted in mid-July.

At the same time as announcing the venture fund meanwhile, BITBOX confirmed that TRON would be the next cryptocurrency to begin trading on its books.

TRON’s acquisition of P2P platform operator BitTorrent Inc. in July, a LINE official hinted, had been a major impetus behind the decision.

As Cointelegraph reported prior to the launch, users in the U.S., as well as the company’s home jurisdiction of Japan, are nonetheless barred from using the exchange due to regulatory difficulties.

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