Silver Castle, an Israeli crypto investment firm for institutional investors launched two new crypto funds this month, reported Bloomberg on Nov. 18th. The firm is reportedly targeting to have $50 million in assets under management (AUM) before the year comes to a close.
The firm is backed by a strong lineup of key figures that includes Zvi Ziv, an ex-chief executive officer of Israel’s largest bank by asset, Bank Hapoalim Ltd.; and Gabriella Ravid, founder and the ex-chief executive office of Psagot Ofek Investment House, the largest investment fund in Israel.
Silver Castle Fund
Eli Mizroch, the CEO of Silver Castle told Bloomberg how the firm took time to build a secure platform, stating that:
“We spent close to a year building [a] robust infrastructure for managing other people’s money at the level of institutional grade with very, very high security.”
Gadi Isaev, a founding partner of the Israeli Blockchain Association, lauded Silver Castle’s launch, calling it “a landmark event for the entire Israeli market.” He spoke highly of the firm’s leadership which is composed of pioneers and leaders in Israel’s financial industry.
Mizroch said that the country’s blockchain ecosystem was instrumental in his company’s decision to build an investment house. The industry has grown from 42 companies in 2015 to 129 at present moment.
In the last few years, about 40 initial coin offerings have come out of Israel, and three of them are in the top 20, claimed Mizroch.
The firm’s first fund is driven by both short and long momentum and is based on an algorithmic trading system that picks the top 5 coins by market cap. Mizroch said that the system had been used in-house for more than a year, helping the company to achieve “high double-digit” returns despite the bear market.
The second fund, which is fully invested and automated picks the top 10 coins based on an algorithm. The firm is planning to launch a third fund that invests in ICOs before the end of the year.
“There is a lot of potential in using blockchain and everything is going to try and move there,” said Ziv, adding that:
“I believe herein lies the biggest potential in the financial world.”
A Bear Market and Crypto Funds
Silver Castle’s launch comes after a terrible year for the crypto market that has seen the price of Bitcoin plummet to just over $4,500 and its market cap dip below $80 billion. The world’s popular cryptocurrency has dragged other altcoins with it, including ETH that has lost its second spot in terms of market capitalization.
According to Autonomous Research, there are currently less than 370 cryptocurrency funds managing $10 billion in assets, a drop in the ocean in the investment world. BlackRock, the largest asset management firm manages more than $6 trillion in assets.
Despite the bear market since the beginning of the year, a number of major Wall Street players have shown an interest in the crypto market. Fidelity Investments launched a digital-asset service for hedge funds, trading firms, and family offices in October. Mizroch welcomed the development and concluded that it was “awesome for everybody.”