PayPal Executives Invest in Index Fund

Prior Paypal Executives have been in the news lately for their investments into Bitcoin. The most prominent executive has been Peter Thiel, with his founder’s fund investments in Bitcoin since the middle of last year. More ex-PayPal users are also investing in the world of cryptocurrencies in different ways.

As of late, Ex-Paypal executives have allocated money into a crypto-currency index fund founded by Bitwise Asset Management. The index fund, which, is currently called, Hold 10, is a fund that will be allocating funds to the top ten leading cryptocurrencies in the worldwide markets. They have raised more than three million from former leaders of Paypal and others.

Seeking Alpha Returns

Many other investors have allocated their funds to Hold 10; these investors include people like the founder of AngelList and cryptocurrency enthusiast, Naval Ravikant, prominent investor and Peter Thiel peer, Keith Rabois, and others.

The people who are allowed to participate in the index fund are those who are based in the United States, are classified as accredited investors and are willing to part with $25,000.

The team states:

“Investment is currently limited to U.S. accredited investors with a $25,000 minimum.”

Their site shows that HoldTen would have provided 2665.9% returns if it had been in operation since January of 2017.

As they note:

The cumulative return is based on a hypothetical backtest of the HOLD 10 Index. Actual returns may differ materially from hypothetical returns of the index.

The idea is to capitalize on the growth of the cryptocurrencies and provide it to investors in a safe manner and thus, doing so, allows for investors to grow their capital without having to experience massive losses. The aspects of minimizing substantial losses and having the market managed for the investor is a couple of the key appeals that the firm believes will draw in savvy investors.

What is the Hold 10 Fund?

According to the firm and its website:

“The world’s first cryptocurrency index fund.

The Bitwise HOLD 10 Private Index Fund holds the top 10 cryptocurrencies weighted by market cap and rebalanced monthly. It’s a traditional investment vehicle. You buy shares, not coins”

The fund seeks to allocate the funds of investors into the top ten cryptocurrencies allocating the funds in proportion to the value of each of the coins and their market capitalization.

The Chief Operating Officer of the firm states:

“We and our investors believe that a vehicle like this, or passive index investing as an approach, is a great way for many people to participate in cryptocurrency.”

This is undoubtedly an accurate statement, as many would like to participate in the market without having to be involved on a day to basis directly.

There are funds that track the price of Bitcoin and other products that are soon to arrive like Bitcoin Exchange Traded Funds and others as well, which investors may seek to flock to when they arrive.

Horsley, the Chief Operating Officer of the firm states:

“Cryptocurrency is such a new and volatile asset class, it’s hard to guess how the market will play out in the future. If you use subjective judgment, you could misjudge or overlook something.”

Diving deep into the technicals of the blockchain, then the various aspects of each coin on a day to day level can be very time consuming, and time is a luxury that many don’t have. Thus, these sorts of funds and more that will be more open to investors that are seeking to allocate less will provide investors with value.

The post PayPal Executives Invest in Index Fund appeared first on Getting Started With Cryptocurrencies & Bitcoin - bitGuru.