Cryptocurrencies have become all the rage in the past year and have surged in value exponentially to reach an incredible market cap of around $150 billion. This has helped to bring investors from all over the world together to join in this opportunity. Many continue to wonder about whether or not it is a bubble, or here to stay.
The one issue with the market seems to be the lack of investment vehicles available to those who want to invest. There are currently only a few ways to invest in cryptocurrencies which can be done through a dedicated fund, or by private fund offerings known as ICOs.
These options are not great for large volumes, and create a market that is very fragmented. According to the CEO of French-based NaPoleonX, Stephane Ifrah, some of these options are risky and “a large number of ICOs should fail – if we take the internet revolution as a benchmark in the 2000s.”
There has been a strong need to add infrastructure to the world of cryptocurrency investing, but only a few have jumped at the opportunity. Another popular way to invest has become investing in hedge funds related to cryptocurrencies.
These allow for a gap between the actual currency and the investor. Ifrah further stated that “we believe that in order to continue to attract new investors from the fiat world, more conventional investment vehicles will be required. They will need to handle large amounts of investment and bear a more reasonable risk level.”
The industry of cryptocurrency is one that is difficult to become apart of given its secretive nature and relatively new history. With the market looking like it has the potential to become a big player in world economics, it appears that many are stepping into the limelight to find their place in the industry.