HFR Hedge Fund Strategy Definitions - Blockchain
Blockchain Strategy Definitions
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Blockchain |
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The HFR Blockchain Indices are a series of benchmarks designed to reflect the performance of hedge fund managers investing in blockchain digital currency and distributed ledger technologies. The Blockchain strategy is subdivided into two substrategies: Cryptocurrency and Infrastructure technology. Fund managers focusing in Cryptocurrency utilize a variety of trading strategies to profit from exposure to Bitcoin, Ethereum and other digital currencies. Managers focusing in Infrastructure invest in companies developing blockchain and other distributed ledger technologies which are fundamentally disintermediating payments, banking, market trading structure, Internet of Things (IoT), healthcare, remittances, supply chains, digital identity and more.
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| Cryptocurrency |
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Investment Managers trade in cryptocurrency directly. The primary purpose of the strategy is to trade cryptocurrency, seeking profits by investing in or shorting bitcoin or other digital currencies. The overall investment thesis is to provide returns through an actively managed portfolio of cryptocurrency assets. Managers may use a variety of trading strategies that can be discretionary techniques or employ a variety of automated bitcoin trading algorithms to analyze the market, and then adjust their portfolios as necessary. These trading strategies include, but are not limited to, arbitrage, event-driven and momentum. |
| Infrastructure |
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Managers invest in blockchain, other digital assets technology and other investments related to emerging blockchain protocols. Infrastructure strategy aims to offer access to the most promising, cutting-edge, blockchain companies in the digital asset space. Managers focus on how blockchain technologies have begun to, and will continue to, fundamentally change payments, banking, market trading structure, Internet of Things (IoT), healthcare, remittances, supply chains, digital identity and more. In addition, key themes include cloud storage, decentralized computing, digital investment platforms and on-chain fund tokens, blockchain infrastructure protocols and promising innovations involving token interconnectivity and transaction scalability. |