Large institutional investors are avoiding hedge funds that invest in bitcoin or initial coin offerings despite the number of products in the sector ballooning this year. Investors cite volatility, the potential for fraud and the lack of a track record as reasons for shunning the products. We favor assets with a long track record in producing returns or reducing risks,” said Greetham, who heads RLAM’s multi asset team. The SEC has been investigating whether some companies have violated securities laws by promoting their own cryptocurrency offerings.
Large institutional investors are avoiding hedge funds that invest in bitcoin or initial coin offerings despite the number of products in the sector ballooning this year. Investors cite volatility, the potential for fraud and the lack of a track record as reasons for shunning the products. The SEC has been investigating whether some companies have violated securities laws by promoting their own cryptocurrency offerings.