New York-based law firm Capital Fund Law Group Lawyer John Lore who specializes in cryptocurrency hedge funds said that some universities are making small investments in digital assets. He claims that crypto hedge funds are currently proving an attractive opportunity for academic institutions on America’s east coast.
Universities are the first to invest in crypto hedge funds
Cryptocurrency investment seems like too much of a risk to take for many institutions as there is still scant regulation over the industry. Also putting them off is the lack of proven success of many of the funds that exist in the space today. John Lore, however, claims that there are some universities looking to invest and starting to take up new positions.
According to the Business Insider, John Lore noticed the interest among certain academic institutions. He said, “I can’t say the names of [the academic institutions] because that’s attorney-client but we have people mostly on the East Coast that have begun doing investments in this space on a fairly modest basis.”
Already having advised around 30 digital currency hedge funds, the Capital Fund Law Group which Lore is a part of is emerging as a specialist for the cryptocurrency investment space. It helped potential providers navigate the cryptocurrency space still suffering from a lack of regulation. Lore continued, saying that most of the investment he’d seen in crypto hedge funds came from “high net worth individuals and, on a very limited basis, family offices.”
This supports the global independent financial consultancy group deVere Group’s recently conducted research. The group surveyed their high net worth clients last month and found that 35% of them already invested or had plans to invest in cryptocurrencies by the end of the year.
The lawyer further discussed that these individuals were only prepared to risk a tiny fraction of their net worth on cryptocurrency hedge funds, saying, “Yes there are investors but at this point, investors are putting in very small percentages of their net worth as we would expect and as I believe is appropriate.”
Lore continued, saying that the trend among universities he worked with was an exemption. He said, “We see academia as a tie between these somewhat young and enthusiastic fund managers and capital raising.”