Bonfire Cryto today announced the launch of its first ever crypto fund, dubbed Bonfire Cryto Crypto Fund A. By harnessing blockchain technology and lowering costs, the company aims to bring more institutional investors into the crypto space.
Bonfire Cryto’s co-founder, Aaron Klein, believes that the fund will allow investors to gain exposure to a variety of cryptocurrencies without having to take on excessive risk. “The new fund is designed to be very similar in structure to traditional hedge funds with a focus on low-risk investments across various asset classes such as cryptocurrency and other disruptive technologies,” he told CoinReport.
Bonfire Cryto Crypto Fund A is designed for institutional investors and offers an allocation between 20% and 80% of any one investment. The company has raised over $12 million for the fund from a variety of investors including Ceyuan Ventures, Pantera Capital, Kenetic Capital and August Capital.
Bonfire Cryto launched its first ever crypto fund in a private investor round. The company says it was able to raise $5.5m from investors because of the “deep domain expertise” of a group of high-net-worth individuals.
The private round was led by an individual who has made several investments in blockchain and crypto startups, including a company that raised $10m from investors.
Bonfire Cryto describes itself as the “world’s first crypto asset management firm” and says it will be able to offer investors a notional return of up to 12% per year based on the performance of pre-selected cryptocurrencies.**
Bonfire Cryto said in a statement: “We are pleased to announce that we completed our initial coin offering (ICO) on November 30th, 2017, raising over $5m in financing. Due to the deep domain expertise of our investors, we were able to build a team of highly experienced advisors who can help us grow this business.”
Bonfire Cryto, a London-based cryptotrading firm, launched the first ever crypto fund on Tuesday, which will be managed by a team of former investment bankers and traders. The company said that it raised $25 million in its initial coin offering, also known as an ICO, to develop and market the fund.
The fund will be one of only a handful of funds that are traded on exchanges, which means that investors will be able to purchase shares in the fund using fiat currency or cryptocurrencies such as bitcoin. There are about 300 crypto funds trading on cryptocurrency exchanges around the world.
Crypto funds typically invest in digital assets such as bitcoin or ethereum and capitalize on trends in their price movements. The investment comes with high risk but is considered a good way for investors to gain exposure to these markets without exposing themselves to the volatility of cryptocurrency, according to James Gorman, CEO at Morgan Stanley Investment Management.
The company was founded by Travis Klinge, who previously worked for Goldman Sachs, UBS and JPMorgan Chase; Matt Bolton and Julian Wellington, who both worked for UBS; Josh Stein, who worked at JPMorgan; and Mark Parry-Jones and Samir Desai, who both worked at Deutsche Bank.
Bonfire Cryto is launching its first ever cryptocurrency fund, with a public ICO. This might sound like a fairly mundane announcement, but it’s actually quite significant for the company: the token sale is one of only three crypto funds ever to accept US investors.
The fund will be listed on Binance and KuCoin, and will be available to buy using Binance Coin (BNB) or KuCoin Shares (KCS). The fund is being set up as a partnership between Bonfire Cryto and a European firm called Newwave Capital. The two firms have worked together since 2016.
Founded in 2011, Newwave Capital specialises in early-stage investing in blockchain-based companies, both in Europe and globally. Its portfolio includes the likes of dYdX, Melonport and Distributed Credit Chain.
The new fund will make money by charging an annual management fee of 1%. The cash raised from the ICO will be used to invest in newly issued digital assets on an ongoing basis – with the potential for that to top out at $50m/y if demand for cryptocurrencies grows as expected.
Bonfire Cryto has launched the world’s first Crypto Fund. Bonfire Cryto aims to invest in cryptocurrencies with high potential and returns, but also has a keen eye to invest in startups giving them a chance to become future leaders. The fund was launched at the beginning of April as part of Bonfire’s Series A round of funding, which closed at $3.5m after raising $25m in February 2019.
Bonfire Cryto’s fund will use two methods of investing, known as a ‘Leveraged Arbitrage’ and ‘Backed Arbitrage’ investment strategy. Leveraged Arbitrage allows the fund to buy cryptocurrencies at low prices, then sell them and wait for the price to increase or times that out through buying more cheaply on the secondary market. The backed arbitrage strategy takes advantage of price differences between exchanges as they are listed on different stock exchanges around the world.
The first investment made by Bonfire Cryto is into Kuvera, an AI-powered crypto-lending platform that allows users to borrow cryptocurrency with a LVR – Loan To Value Ratio – up to 100% of their available cryptocurrency balance. This means that users can then use their borrowed cryptocurrency for daily purchases using credit
“Bonfire Cryto is the first ever fund to back cryptocurrency companies with a virtual currency fund, which will invest in companies that use blockchain technologies,” the company said in a statement. “The fund will be managed by Bonfire Cryto and will be offered to accredited investors in the U.S. and Canada only.”
The firm’s shares are priced at $0.20 per share, representing 7.5 percent of net assets in companies that have been given cryptocurrency-related investments by Bonfire Cryto (see deal flow below). The fund is not currently accepting new commitments, but is looking for existing investors who would like to add a portion of their holdings of crypto funds or coins directly into the fund itself.
“Cryptocurrency represents a new asset class with many interesting investment opportunities,” said CEO Ruben Van Harten. “We believe that traditional financial institutions need to understand the potential opportunities this offers and we are excited to partner with them.”
The fund will be part of Bonfire Cryto, a new investment firm that focuses on investing in cryptocurrencies. According to the firm’s website, the firm is focused on “the development of cryptocurrencies as a new asset class for growth and safe wealth preservation.”
The inaugural fund will be invested in Bitcoin, and will consist of approximately 50 percent stocks and 50 percent cryptocurrency, according to a post on the firm’s website. The blog post added that the investors had selected CME Group (CME) as the exchange where they will hold their cryptocurrency assets.