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.

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

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 a CoinDesk news reporter based in Asia.