DeVere launches actively managed crypto product

DeVere launches actively managed crypto product

Financial advice business DeVere has launched an actively-managed cryptocurrency product.

The DeVere Digital Asset funds has been launched for experienced investors with Dalma Capital Management, a hedge fund manager in the Dubai International Financial Centre.

The product has been launched to address growing demand by clients who want the potential benefits of exposure to the digital currency sector - which include portfolio diversification and decent returns - but with what DeVere chief Nigel Green described as reduced volatility.

It will invest in a diversified portfolio of digital assets through algorithmic trading over different platforms – including crypto-currency exchanges and OTC markets - as well as arbitrage opportunities.

Mrl Green, chief executive of DeVere Group, said: "Cryptocurrencies are now undeniably part of mainstream finance.  

"Their momentum continues to gain traction as both retail and institutional investors increasingly value the need and demand for digital, global currencies in today’s ever-more digitalised and globalised world.

"Through a ground-breaking algorithmic system, when the price of one asset, for instance Bitcoin or Ethereum, is greater on one platform than on another, the opportunity is identified to generate profit from the difference of price across platforms.

"These trades, referred to as arbitrage, allow profits to be generated with little or no directional market risk."

DeVere Group claims to be one of the world's largest independent advisers of specialist global financial solutions to international, local mass affluent and high-net-worth clients.

It has a network of more than 70 offices across the world, more than 80,000 clients and $12bn (£9.3bn) under advisement.

Jeremy Edwards, associate partner at Martin Redman Partners, said: "Personally I run away screaming from cryptocurrencies.

"I had one client ask me about it and I asked him how they would turn it back into currency they could actually spend and they said they didn't know, so I said he should probably find out first.

"I know people who have made money out of cryptocurrency but it tends to be people who joined a long time ago and it is interesting that as soon as they made decent returns they bailed."