Hobbyists’ Market
Another one-time bond specialist setting up a fund to harness opportunities in cryptocurrencies is Alex Walsh, who previously worked at credit hedge fund Decca Capital Ltd. He plans to start a new event-driven hedge fund trading large-cap digital currencies, including Bitcoin, Litecoin, Ripple and Ethereum, by the end of March.
Walsh, who until recently spent his days combing balance sheets looking for trading ideas, sees opportunity in applying professional investment experience to a corner of finance that’s currently the preserve of amateurs.
“When realizing how inefficient crypto is, it was fascinating to me,” said Walsh. “This market trades tens of billions of dollars per day in volume, but the majority of that is driven by individuals and hobbyists with still a small percentage of digital assets actively managed by institutions. That dynamic creates mis-pricing and therefore trading opportunities."
This article was provided by Bloomberg News.