It may be surprising to learn that the word
"cryptocurrency" was added to the Oxford English
Dictionary in 2014, since many industry participants would not have
come across the word until 2017 when the rapid increase in the
price of certain cryptocurrencies garnered mainstream media
attention.
As a result, stories and articles about "Bitcoin
Billionaires", plans to turn Puerto Rico into a "Crypto
Paradise" and Satoshi Nakamoto all became front page news.
However, by November 2018, the price of Bitcoin had slumped to
slightly above US$4,000. The volatility is not limited to Bitcoin;
all cryptocurrencies have experienced volatility.
High volatility potentially makes cryptocurrencies a promising
opportunity for alternative investment funds. Institutional
investors are actively pursuing these opportunities and are
leveraging their experience in traditional asset classes to seek to
minimise the risks associated with investing in cryptocurrencies.
As the most popular
