Silver Castle, a digital currency investment house based in Israel, has launched two cryptocurrency-based funds this month.
Firm Offers Asset and Portfolio Management Services
The Middle Eastern nation’s first dedicated crypto investment firm, Silver Castle Ltd., has launched two funds this month. The funds will be offered to institutional and accredited investors.
Despite a bad year for cryptocurrencies, the firm expects to have around $50 million under management by the end of 2018.
According to Bloomberg, there are currently over 370 crypto funds managing around $10 billion in assets.
Eli Mizroch, CEO at Silver Castle, says:
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.
The firm has some highly credible names from Israel’s financial services industry as part of its team, including Zvi Ziv, former CEO of Bank Hapoalim Ltd., Israel’s largest bank by assets, and Gabriella Ravid, founder and former CEO of Psagot Ofek Investment House, the country’s largest investment fund.
The Country’s Growing Blockchain Eco-System
Silver Castle’s launch was termed “a landmark event for the entire Israeli market” by Gadi Isaev, founding partner of the Israeli Blockchain Association. Isaev also spoke highly of the management team, calling them leaders and pioneers of the Israeli financial industry.
According to Mizroch, the country’s blockchain ecosystem played an essential part in the decision to build the investment business. Blockchain firms in Israel have grown to 129 from a mere 42 back in 2015.
Israel has hosted over 40 initial coin offerings (ICOs) in the last few years, and three of those are among the 20 largest in the world.
Fund Details
The first fund from the firm is both long- and short-momentum driven based on an algorithmic trading system that trades the five largest cryptocurrencies by market capitalization.
It is reported that the company first tested the platform in-house and experienced high double-digit returns in dollar terms despite the bear market. The second fund offers a basket of the top 10 assets weighted according to an algorithm that is fully invested and automated. A third token-based fund that invests in ICOs is expected to be launched by the end of the year.
Zvi Ziv notes:
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.
Israel is making its presence felt in the blockchain space. The country is keeping up its reputation as a start-up nation with a growing number of cryptocurrency firms. This mainly is due to the effective regulations that are in place.
What are your thoughts on the new funds being launched by the Israeli firm? Let us know in the comments below.
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