‘Crypto’ hedge funds spring up in crowded field
Ari Lewis was a high school student in Long Island, New York, when he bought his first bitcoin in 2012. It cost less than $10, he recalls.
This May, as the price of a single bitcoin climbed towards $2,000, Mr Lewis graduated from Ohio’s Case Western Reserve University with a business management degree and a new job: co-founder of a small cryptocurrency investment fund called Grasshopper Capital. Eight wealthy people invested a total of $2.2m, lured by the soaring value of bitcoin and other cryptocurrencies.
Earlier this month, Mr Lewis was claiming a 90 per cent return between August and the start of September because of extreme short-term volatility. Since then bitcoin has dropped 15 per cent. He said he could not discuss his current returns but reiterated: “We are long-term investors.”