Hedge Fund Manager Has Put 90% of His Money into Cryptocurrencies

A hedge fund manager has said that he nearly invested all of his money into cryptocurrencies, claiming to be ‘comfortable’ with the volatile market.

Speaking on CNBC’s ‘Squawk Box,’ Brian Kelly, founder of BK Capital Management, who runs the BKCM Digital Asset Fund, said he has 90 percent of his money in cryptocurrencies.

He explained:

I run a fund. I have my money in that. I’ve got investments elsewhere. But that’s not for everybody. I’m making a big bet.

For many such an investment would not be easy to handle. At the end of 2017, bitcoin’s value rose to within touching distance of reaching $20,000 for the first time. However, the start of 2018 has proven to be a tough beginning for the digital currency market. Amid increasing regulatory pressure and fears of a bubble, market prices have tumbled. At the start of February, bitcoin was trading just over $6,000. Market values have made a slight recovery since then with bitcoin currently trading at $8,657, according to CoinMarketCap. Yet, it remains far from its all-time high.

However, while these wide price rides would cause many to jump ship and sell their coins, Kelly claims that he’s ‘comfortable’ with it.

In his opinion, though, cryptocurrencies should be looked at more broadly than as a payment system, adding:

This is broader than just a currency. I’m making a bet that this is a new asset class in general.

While he did admit that some coins are used on the dark web, he claimed that they were not being talked about as much as they used to. With such faith in where the digital currency market is heading, Kelly believes that a ‘global digital economy’ will emerge from one of the thousands of digital currencies on the market.

Interestedly, he said:

I’m not convinced it will be bitcoin. It could be something else. History of tech tells us tech disrupts itself.

Despite remaining confident in the market, Goldman Sachs’ global head of investment research doesn’t share the same feelings. Earlier this month, Goldman’s Steve Strongin, said that most digital currencies are unlikely to survive and will ‘most likely trade to zero.’

Featured image from Shutterstock.


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