Cambrian Says Its New Bitcoin, Ethereum Trusts Will Cut Through Volatility

The California-based asset manager said the new trusts will reduce volatility through its active management strategy.

AccessTimeIconSep 23, 2021 at 10:06 a.m. UTC
Updated Sep 23, 2021 at 2:23 p.m. UTC

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Quantitative crypto hedge fund Cambrian Asset Management said its two new actively managed trusts, one trading bitcoin and one trading ethereum, will manage downside risk.

  • The $200 million fund said in a press release on Wednesday that its management strategy will “manage downside risks and maintain substantial upside potential while seeking to defer taxable events for their investors.”
  • Cambrian claims this strategy has helped its hedge funds cut downside volatility by over 70%, while delivering higher returns than a digital asset passive index in the past three years.
  • Only institutional and accredited investors can buy into the trusts with an initial minimum investment of $50,000.
  • The trusts will charge 4% in management fees, almost double the fees charged by Grayscale Bitcoin Trust, according to Bloomberg.
  • Cambrian’s flagship hedge fund has returned 76% this year until August, Bloomberg reported, citing people familiar with the matter.
  • The hedge fund was founded by executives from Winton Capital and Millennium Management, and is based in Mill Valley, California.

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Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

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Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

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