Institutional Crypto Investment in Israel Lifted With Two New Funds

Wilfred Michael 

Wilfred Michael

News reporter

20 November 2018,
Institutional Crypto Investment in Israel Lifted With Two New Funds

An Israeli-based crypto investment firm, Silver Castle Ltd has launched two new funds that will attract more institutional investors to the industry according to a Bloomberg report.

The firm’s CEO Eli Mizroch said it had taken them over one year to provide the needed infrastructure and security to operate an institutional grade fund. Therefore, the firm hopes that an influx of new investors because of the new offering will raise the volume of crypto assets under their management up to $50 million before the end of the year.

Achieving such numbers will no doubt boost the firm but will only mean that they are grabbing a minute share of the global crypto asset management ecosystem. Per the report, there is currently more than $10 billion worth of crypto assets being managed by over 370 investment firms around the world.

The big plus of Silver Castle is that the newly launched funds are the first of its kind in Israel. Also, Gadi Isaev, a member of the Israeli Blockchain Association described the firm’s business as “a landmark event for the entire Israeli market,”

Nature of The New Funds By Silver Castle

One of the two funds offered by the firm using an algorithm to track the five largest cryptocurrencies by market cap and over them to investors based on a long-term and short-term basis. Mizroch points out that this particular fund has helped traders in the company’s portfolio to raise “high double-digit” this year.

The second fund is automated for investors and will use algorithms to pick the top ten cryptocurrencies by market cap. Silver castle also plans to launch a token fund for ICOs before the end of the year.

Meanwhile, the Israeli crypto and blockchain industry has experienced a rapid growth despite the bearish market conditions. Mizroch said in the report that the nation has hosted 40 ICOs in the last three years with three of those being among the largest in the industry. Also, 87 new blockchain companies have been opened within this period.

It is largely expected that such growth will make the country a significant contributor to the global blockchain ecosystem soon.