Bitwise Asset Management, a San Francisco-based crypto index fund manager, announced Tuesday the launch of actively managed crypto strategies to meet the needs of institutional investors.

The firm said it designed the active crypto trading strategies to capitalize on market inefficiencies to meet the needs of institutional clients.

Bitwise further stated that it had hired Jeffrey Park, formerly of Corbin Capital and Morgan Stanley (MS), to lead a newly launched dynamic strategy trading team to manage the new portfolio.

The company said that its expansion into actively managed crypto strategies has been driven by growing institutional demand for liquid crypto opportunities.

Bitwise’s move follows Cathie Wood’s investment firm, ARK Investment, which recently launched two actively managed crypto strategies designed for registered investment advisors. The strategies are offered as Separately Managed Accounts (SMAs) through a partnership with the Eaglebrook Digital Asset Platform. Blockchain.News reported on the matter on Oct. 4.

In April, crypto-focused wealth management platform Abra also launched its asset management arm that offers actively managed funds to institutional investors and asset managers, allowing them to trade and borrow cryptocurrencies and earn interest on their assets. cryptocurrency investments.

The above developments indicate that institutional demand for more actively managed cryptocurrency investments is on the rise as asset managers have begun to address the needs of this neglected landscape.

While buy-and-hold emerged as the most prominent approach to investing in digital assets, actively managed digital asset investment strategies now appear to offer a risk-optimized alternative for investors looking to capitalize on the growth and volatility of the crypto market.

As the name suggests, actively managed investment strategies involve actively managing a portfolio to maximize returns and minimize risk.

Through a combination of algorithmic trading strategies, typically automatically executed on trading platforms via APIs, actively managed crypto funds can generate returns even during a crypto winter or market correction.

Additionally, by generating potential returns in falling markets, actively managed investment strategies also benefit investors who face difficulties managing crypto market volatility.

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