Paraxis Capital Launches New Fund for Cryptocurrency Investment

It is reported that the multi-strategy cryptocurrency investment company Paraxis Capital has launched a new relative value momentum fund, which adopts a long/s…

Paraxis Capital Launches New Fund for Cryptocurrency Investment

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 cryptocurrency investment firm, has recently announced the launch of its new fund for investment in cryptocurrencies. The fund is called the “relative value momentum fund” and will have a long/short relative value trading strategy. The initial committed capital for the fund is expected to be between $25 million to $50 million.

Relative value trading is generally a type of investment strategy where the investors make simultaneous purchases of undervalued assets and short sells overvalued assets. This trading methodology aims to generate profits by capitalizing on the differences in pricing between two financial instruments. Long positions are generally taken on the undervalued assets, where there is a possibility of an increase in value in the short term, while short positions are generally taken on the assets that appear to be overvalued or overpriced.

In the case of Paraxis Capital’s new fund, this trading methodology will be applied to the cryptocurrency market. The fund will focus on taking long positions on cryptocurrencies that are perceived to be undervalued and short positions on the cryptocurrencies that appear to be overvalued. The relative value momentum trading strategy of the fund is expected to generate returns for its investors by taking advantage of the volatility of the cryptocurrency market.

The cryptocurrency market has seen tremendous growth over the past decade, with the market capitalization of cryptocurrencies surpassing $2 trillion in 2021. With such rapid growth, the market for cryptocurrency investment has also been expanding. This has led to the emergence of a range of different investment options for investors, including cryptocurrency funds such as Paraxis Capital’s new fund.

In conclusion, the launch of Paraxis Capital’s new fund represents a significant development in the cryptocurrency investment market. The fund’s use of a relative value momentum trading strategy is designed to generate returns for investors by taking advantage of the volatility of the cryptocurrency market. As the market for cryptocurrency investment continues to grow, it is likely that we will see more and more investment options emerging in the market, adding to the development of exciting opportunities for investors.

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