Financial Consulting Firm DeVere Launches Arbitrage Crypto Trading Solution
Major independent financial consulting company deVere Group has launched a suite of new Digital Asset Funds targeting “experienced investors,” according to a deVere press release published Nov. 1.
According to the company’s website, deVere has more than $10 billion under “advice and administration.”
DeVere founder and CEO Nigel Green has said the company’s move into crypto funds management was given impetus by the recognition that “[c]ryptocurrencies are now undeniably part of mainstream finance.” The CEO said that “mass adoption [is] on the horizon” as:
“Their momentum continues to gain traction as both retail and institutional investors increasingly value the need and demand for digital, global currencies in today’s ever-more digitalised and globalised world.”
DeVere’s new digital asset solution is designed to address burgeoning demand from clients who want exposure to the crypto sector, with “portfolio diversification” and “decent returns,” yet with “reduced volatility.”
The solution will reportedly invest in a diversified portfolio of crypto assets, using algorithmic trading across platforms — including crypto exchanges and over-the-counter (OTC) markets — to maximize arbitrage opportunities.
The press release proposes that arbitrage — when the price of a cryptocurrency such as Bitcoin (BTC) or Ethereum (ETH) is discrepant between platforms — can be algorithmically optimized, and claims that the deVere solution allows investors to generate profits from cross-platform trades “with little or no directional market risk.”
The new investment solutions have reportedly been developed together with Dalma Capital Management Limited, a hedge fund manager based in the Dubai International Financial Centre.
Dalma Capital CEO Zachary Cefaratti has said that the crypto markets “abound with durable inefficiencies,” which provide an opportunity for “hedge funds to generate uncorrelated excess returns through systematic relative value arbitrage, momentum trading and mean-reversion strategies.”
Ceffarati noted that regardless of whether the market is bull or bear, the variations in trading prices for the top 25 cryptocurrencies across “400 liquidity venues” opens up the potential for investors to profit, trading both short and long.
The deVere Digital Asset Platform is set to be showcased at the Alternative Investment Management (AIM) Summit, which will take place in Dubai 26-27 Nov.
DeVere has been closely watching the emerging crypto space, with Nigel Green interpreting the low levels of volatility in the markets of late as a “signal that the cryptocurrency market is maturing.”
The CEO has predicted that the sector’s growth “can be expected to soar further and quicker over the next decade as more and more investors pile into [cryptocurrencies] ... and as adoption by businesses and organisations further increases.”