E-CURREX INSTITUTIONAL SERVICES
E-CURREX INSTITUTIONAL SERVICES
After a meteoric rise from under $1,000 to almost $20,000 in 2017, bitcoin, the largest cryptocurrency, crashed to $3,000 at the end of 2018. Investors who bought in at the peak of the mania watched their investment shrink by 85%.
In 2019, however, the price has quietly risen by over 300% — back to over $10,000.
There are reports that large institutional investors and funds may be at least partial drivers of the recent rally. Many people believe that the recent rally can’t be sustained without support from more than just bitcoin’s early adopters.
However, investing in crypto is not the same as investing in other asset classes. Not only is it highly volatile and speculative, it comes with new and unique challenges such as valuation methods, technical due diligence, custody, and liquidity. Large institutional investors — such as hedge funds, banks, family offices, and endowments — will need many of the same products services that they need for investing in other asset classes.
The massive amounts of capital that hasn’t gone into crypto yet has the potential to take crypto back to its all time highs and far beyond it. E-currex Institutional Services provide products and services that help hedge funds, banks, endowments, and family offices invest in crypto.
RESEARCH AND EDUCATION
Investing in cryptocurrencies requires different due diligence practices and analyses than investing in commodities, stocks, or currencies. You need to evaluate blockchain technology and economics and there aren’t any commonly accepted valuation methods. E-currex educates investors about crypto assets.
On Wall Street, equity research firms conduct extensive due diligence and financial analysis on public companies so that investors can make more educated investment decisions.
E-currex Investment Research Firm provides the same value proposition but have specialized expertise in crypto assets.
ON-CHAIN AND EXCHANGE ANALYTICS
E-currex Capital provides metrics on on-chain and crypto exchange activity. E-currex reports on bitcoin’s network value and the transaction value flowing through the blockchain to determine when the asset may be over or under valued.
NEWS AND MEDIA
E-currex provides news analysis on traditional markets. Who will become the CNBC of crypto?The Blockchain and CoinDesk are the early front runners but we will get there.
We have an excellent broadcast that is geared towards institutional investors.
Buying, holding, and managing cryptocurrencies have unique challenges. You need your private keys to make transactions and access your crypto assets. However, private keys are almost impossible to remember and can be stolen or hacked. Online wallets and exchanges are options but there have been many major news stories about hacks and security flaws that have kept less risk-tolerant investors on the sidelines. E-currex advises Institutional investors on the best wallet to use and security measures to take to be on the safety side.
No one wants to invest in an asset and then have it get lost or stolen. Custody companies provide storage and security services for cryptocurrencies.
There’s been a tremendous amount of progress in this sector. Most notably, E-currex has formed a digital assets group called E-currex Digital Assets that provides custody and execution services.
Proof of stake is a system for verifying transactions on a blockchain. Whereas cryptocurrencies with a proof of work system, validates transactions and creates new blocks when users perform computational work, a proof of stake system validates transactions and creates new blocks based on the amount of the cryptocurrency that the user owns.
According to Staked, a company that provides staking services for institutional investors, “~25% of the total cryptocurrency market will use proof of stake as a security model by the end of 2019.” That means that owners of proof of stake cryptocurrencies can participate in governance and collect staking rewards.
You can buy stocks through almost any traditional bank or brokerage company. However, until recently, prospective crypto investors didn’t have all the tools and services that they need to buy and trade in a safe and efficient manner.
E-currex provides trade execution, portfolio management, and analytics products built for the needs of large investors.
In 2017, as bitcoin was screaming towards all time-highs, many new crypto projects came to market with hopes of providing similar returns. However, many of these projects are low quality at best and scams at worst. Companies such as E-currex helps investors filter through all the noise and find the best investment opportunities.
OVER THE COUNTER TRADING DESKS
Most cryptocurrencies don’t have nearly as much trading volume as assets such as large cap stocks. Therefore, if large investors were to place a large buy or sell order on an exchange, it could send the market up or down and therefore reduce the investor’s ability to sell at their desired price. E-currex connects large buyers and sellers who then make transactions directly.
Many large investors allocate capital to funds who then make direct investments in different assets. For example, rather than investing in specific startups, a family office can invest in E-currex Venture Capital fund for E-currex to source, evaluate and invest in a portfolio of startups. E-currex makes investments directly into various cryptocurrencies and companies who provide products for the cryptocurrency ecosystem.
E-currex provides a helpful graphic on the different strategies that crypto funds deploy:
We deploy a mix of these strategies to invest directly in cryptocurrencies, startups in the crypto market and crypto funds.
E-currex Venture Capital finds and make equity investments in companies that provide products for the crypto ecosystem. There are a number solutions that are needed to make bitcoin a viable payments system, store of viable, or viable investment opportunity for retail investors and investing in the companies that provide these solutions can deliver significant returns. For example, Coinbase, one of the largest exchanges, is reported to have been valued at $8 billion, which is more than enough to provide significant returns for funds who made venture investments in the company.
E-currex Group is among the most active dedicated crypto venture capital funds. We also invest in startups in industries outside of crypto which have made significant impact in their space sector.
FUND OF FUNDS
Similar to investing in cryptocurrencies, investing in crypto funds requires unique expertise and due diligence practices. Institutional investors invest in funds of funds who evaluate crypto investments and invest their clients capital across the best funds. E-currex Capital is among the most prominent crypto funds of funds.
BUILD: OUR SUBSIDIARIES
It is our view that broad exposure with the optionality to concentrate our focus is a winning strategy. We build service businesses to fill important gaps in the existing market infrastructure. We incubate, acquire, and operate businesses that provide a variety of financial and professional services to financial institutions, corporations, and startups.
E-currex provides the full suite of services global investors require for their digital asset portfolios. We offer institutional funds, market makers and other entities digital asset OTC trading, institutional lending, custody and prime brokerage services.
E-currex is one of the world’s largest digital currency asset manager. We sponsor investment products.
E-currex provides leading independent source of blockchain news, research, and data. We plan on organizing Consensus, the digital asset industry’s premier annual event in Africa.
We are building a leading digital asset exchange and wallet operating in major and emerging markets, E-currex makes it safe and easy to buy, store and learn about cryptocurrencies.