Cryptocurrency And Distributed Ledger Technology – Hedgeweek Cayman Report 2018

The stratospheric rise in the value of cryptocurrencies throughout 2017, coupled with significant price volatility, caught the attention of the world at large. Opinions remain polarised, with regulators warning "Main Street investors" of the risks associated with purchasing virtual currencies and cryptographic tokens. The underlying distributed ledger technology is far less controversial, with well-known global financial institutions investing heavily in this space.

Investment managers looking to launch crypto-focused investment funds aimed at professional investors often wish to set up a standalone, master-feeder or mini-master fund structure in the Cayman Islands. With many global digital asset and virtual currency exchanges preferring offshore counterparties, managers of domestic funds also find themselves establishing Cayman Islands vehicles.