China may have banned Bitcoin and cryptocurrency exchanges, but that hasn’t stopped Chinese investors from outsized returns investing in crypto hedge funds.
Hong Kong, CHINA – The cryptocurrency markets may be in a bit of turmoil right now with investors searching for direction as Bitcoin trades well below US$7,000 and Ethereum well below US$600. At 6.30 a.m. Eastern Time, the price of Bitcoin was approximately US$6,800 and the price of Ethereum was US$580. But despite the lackluster cryptocurrency markets, some Chinese initial coin offering (ICO) funds have turned in spectacular results for the past year. Even though ICOs and cryptocurrency exchanges have been banned by Beijing, that hasn’t stopped Chinese investors and fund managers from investing in overseas ICOs and their results have been nothing short of phenomenal, beating the traditional equity and bond markets by a long shot. Based on information obtained from Chinese crypto fund managers as well as investors, we take a look at some of the best returning funds for the year to date and help you identify the trends and themes that could add to your crypto portfolio. Here’s a ranking of the top ten Chinese-backed cryptocurrency funds and their returns on investment.
1. Draper Dragon
Established in 2006, Draper Dragon has a long investment pedigree and a branding unparalleled. With offices in both Silicon Valley and Shanghai, Draper Dragon is led by seasoned investment manager Bobby Chao and has Silicon Valley legendary investor Tim Draper as a limited partner. Over the past year, Draper Dragon have been selective about the quality of the blockchain and cryptocurrency investments they took part in, with portfolio companies including Verse, a blockchain company that enables instant payments, VeChain, a leading enterprise blockchain service provider, Ledger, a blockchain and cryptocurrency security expert, messaging application Telegram and Aelf a decentralized cloud computing blockchain network. Draper Dragon’s fund based solely on its crypto portfolio returned an eye-watering 1,060 percent year-to-date.
2. Neo Global Capital
Singapore-based Neo Global Capital’s crypto portfolio includes some of the most sought-after digital token companies today. With a roster that includes such big hitters as Ontology, a distributed trust collaboration platform, crypto darling Zilliqa, a high performance smart contract platform and IoTeX a privacy centric internet-of-things platform, the fund, helmed by a seasoned panel of investors including Tony Tao, a former secretary general of NEO, dubbed “China’s Ethereum” has returned to investors 730 percent year-to-date.
3. Nirvana Capital
San Francisco-based Nirvana Capital has holdings in projects such as OmiseGO, an Ethereum-based financial inclusion and interoperability protocol and Qtum, a proof-of-stake consensus protocol. As values of both OmiseGO and QTUM have shot up astronomically, the value of Nirvana Capital’s investments have returned 729 percent to investors. Alfred Jiang, a Silicon Valley veteran and one of the most well-connected investment managers in both China and the United States is one of its founding partners.