Paraxis Capital Launches New Cryptocurrency Relative Value Momentum Fund with $25-$50m Initial Investment

03/09/2023 22:54 • Tech Ticker • 141 views

It is reported that the multi-strategy cryptocurrency investment company Paraxis Capital has launched a new relative value momentum fund, which adopts a long/short relative value trading strategy and an initial committed capital of $25 million to $50 million.

Paradoxis Capital launched a new relative value momentum fund

Analysis based on this information:

Paraxis Capital, a multi-strategy investment company, has reportedly initiated a new relative value momentum fund focusing on cryptocurrency investments. With an initial committed capital of $25 to $50 million, the long/short relative value trading strategy focuses on a broad range of cryptocurrencies, including Bitcoin, Ethereum, and Ripple.

The fund adopts a momentum-based approach, where investments are based on the performance of various cryptocurrencies over the last few months. Instead of considering the cryptocurrencies’ intrinsic value, the investment decisions are made based on the latest price trends, trading volumes, and market sentiment. This methodology aims to identify cryptocurrencies that are expected to perform better than the others in the short term, maximizing profits from price changes.

Relative value investing is a strategy used by many investors to identify mispricings in securities. It involves comparing the price of one asset to another to determine whether it is over or undervalued. The idea behind this approach is that markets tend to price related securities in similar ways so that any deviations can be exploited. The long/short approach is designed to balance long and short positions in the portfolio, profiting from both upward and downward price movements.

Paraxis Capital’s move is a significant step for the cryptocurrency industry, as the firm is a well-established player in the alternative investment industry. With the increasing interest in cryptocurrencies primarily driven by institutional investors, more funds are likely to follow Paraxis’ lead, broadening the market for cryptocurrency investments further.

In conclusion, Paraxis Capital’s new move to launch a relative value momentum fund with initial capital of $25-$50 million, signals bullish prospects for cryptocurrency investment in the coming months. The firm’s strategy is based on the momentum approach that considers the recent price movements of different cryptocurrencies, maximizing their gains from short term price changes. This new move may inspire more institutional investors to take a keen interest in cryptocurrencies, further increasing the market value.

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Paraxis Capital Launches New Cryptocurrency Relative Value Momentum Fund with $25-$50m Initial Investment

Paradoxis Capital launched a new relative value momentum fund

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