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It's not clear to me what being a hedge fund gets you if all you're doing is holding Bitcoins. Sure, there are some regulated entities that can't invest in Bit
by frisco 14y ago
It's not clear to me what being a hedge fund gets you if all you're doing is holding Bitcoins. Sure, there are some regulated entities that can't invest in Bitcoins otherwise (i.e., pension funds), but they probably aren't going to start here. Otherwise, how is this in any way better than just buying Bitcoins on your own and not paying the fees?
- gasull 14y agoI think the only advantage is for the regulated entities that you mention.
- damoncali 14y agoIs that even true? There are restrictions on the types of portfolio companies that VC's can invest in because of the limited partners. That's why startups are corporations and not LLC's, for example.
- ianpurton 14y agoIf investment banks want to invest in Bitcoin a hedge fund would give them an easy way to do this. The fund would cover the IT side of things, i.e. coin storage.
- lubos 14y agoConsidering how many bitcoins have been stolen due to security issues last 3 years, when it comes to bitcoins, I wouldn't trust anyone but myself.
- ianpurton 14y agoThere's an article over on slashdot to do with the security model. http://news.slashdot.org/story/13/03/09/0757245/how-the-first-bitcoin-hedge-fund-approaches-security http://news.slashdot.org/story/13/03/09/0757245/how-the-firs... Basically, this is a very big move for Bitcoin. Once investment banks have access to Bitcoins they can decide whether they see it as a potential revenue stream both for FX and prop trading. It would take just one announcement from a large investment organisation to see the Bitcoin price rally.