Former PayPal execs invest in Hold 10’s crypto fund
As digital currencies continue to grow, so does their investment potential. In fact, according to Coinmarketcap at the time of writing, the industry’s combined market cap was sitting at just over $830 billion.
Bitwise Asset Management’s Hold 10, is an index fund which invests in the top 10 cryptocurrencies. Only accredited investors are allowed to contribute, and it has already invested $4 million.
Contributors include former PayPal chief operating officer and product leader, David Sacks, former PayPal executive, Keith Rabois, as well as venture capitalist guru, Naval Ravikant.
Hunter Horsley, who is the CEO of Bitwise, had this to say:
Placing all of your eggs into one basket is a risky move for any investment, and this sentiment holds true for Hold 10 as well. Spreading your investment over many cryptocurrencies will minimize your risk and, in theory, should increase profits. Even though Hold 10 offers this, more than 60% of its investments are in Bitcoin.
A Well known security expert and Bitcoin fan, Andreas Antonopoulos, also agrees with having a diverse crypto portfolio:
According to Antonopoulos, another reason to spread investment love is to counterbalance your portfolio. If one of your crypto investments is doing really well, it can set off any losses you may have as a result of another crypto that’s perhaps performing poorly.
Even so, the crypto industry is extremely volatile and highly unpredictable, requiring investors to be as objective as possible when contributing. Horsley had this to say:
Even though the crypto industry is new to most people, it is still important for investors to educate themselves on it before parting with their hard-earned money.
Like his former colleagues, Peter Thiel, a PayPal co-founder, has also invested heavily in Bitcoin through his Founders Fund, and thanks to the currency’s price surges last year, this investment is now worth hundreds of millions of dollars.
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