Israel’s first dedicated cryptocurrency investment firm, Silver Castle Ltd., launches two funds within a month. Silver Castle Ltd. hopes to grow up to $50 million in assets, under management (AUM) by the end of the year. The vibrant and flourishing crypto ecosystem in Israel is likely to take the two funds forward.
A founding partner of the Israeli Blockchain Association, Gadi Isaev, called the launch “a landmark event for the entire Israeli market.”
Israel’s Crypto Ecosystem
Bitcoin saw a 75% decline from its all-time high. Despite the bearish market, the institutional investor infrastructure continues to bloom. The crypto market is free falling yet the Israeli crypto market seems to have positive prospects. There are approximately 370 crypto firms in Israel, managing $10 million in assets.
Company’s employees are rejoicing in warm prospects that the company’s future holds. Eli Mizroch, the Chief Executive officer of Silver Castle Ltd., said-
“We spent close to a year building robust infrastructure for managing other people’s money at the level of institutional grade with very, very high security,”
140 blockchain companies in Israel brought in over $1.3 billion worth of investments in the third quarter of 2018. In 2017 itself, about 40 ICOs (Initial Coin Offerings) were unveiled.
The significant potential lies in the investment options that Silver Castle is offering. Zvi Ziv, a former CEO of Bank Hapolim Ltd., said-
“There is a lot of potential in using blockchain and everything is going to try and move there, I believe herein lies the biggest potential in the financial world.”
Silver Castle’s first fund is an algorithmic trading system, which combines both long and short-term momentum for the top five coins. Silver Castle manages most of its funds based on proprietary algorithms. These algorithms boast high returns from the first deployment.
“Silver Castle’s second fund has a basket of top ten digital coins which are weighed with an automated algorithm. The company already has plans to launch a third token based fund soon. The first fund is algo-based, momentum-driven, long [and] short on bitcoin and top five [crypto]currencies. The second is smart beta, fully-invested in the top 10 coins. We aim to launch our third fund, a VC fund, that will participate in token offerings, in Q1 2019.”
Automation fund management is crucial, not just because it boasts the returns but because it avoids the trap of human error in judgment. The proprietary algorithms act as stumbling blocks.
Unlike most other U.S. investment agencies, Fidelity Investments isn’t shying away from digital coins. Fidelity Investments is taking a plunge into the industry. The mutual fund giant initiated a digital-asset service in October.
The growing crypto market is the reason for Silver Castle’s bold investment into the market. Israel has become home to over 100 blockchain startups since 2015.