Sequoia and Andreessen Horowitz are secretly backing this cryptocurrency hedge fund

MetaStable Capital, a stealthy startup hedge fund based in San Francisco, invests only in cryptocurrencies such as Bitcoin and Ethereum. One of its founders is the well-known CEO of AngelList, Naval Ravikant.Since its launch in September 2014, MetaStable has delivered such eye-popping performance that it apparently lets the numbers mostly speak for themselves; it shuns publicity and never announced its recent fundraising round,according toFortune. In the spring, Andreessen Horowitz, Sequoia Capital, Union Square Ventures, Founders Fund and Bessemer Venture Partners all invested in MetaStable Hedge funds tied to cryptocurrencies exploding

Recent increases in the prices of cryptocurrencies have led to attention being focused on the hedge funds that had crypto holdings. Such funds were relative outliers until the market for Bitcoin and others began booming earlier this year, reports CoinTelegraph.

According to hedge fund analysis firm Eurekahedge in June, over the 46-month period from end-June 2013, the Eurekahedge Crypto-Currency Fund Index returned a cumulative of 2152.32%. On an annualized basis, this came to 125.35% for actively managed cryptocurrency strategies, outperforming the Bitcoin Price Index by 103%.

There are now an estimated 70 such funds in the pipeline according to information from various accounting and law firms, says ValueWalk. For example, accounting firm Arthur Bell is reportedly working with about 15 fund managers in the field and expects to take on 20 more. Meanwhile, law firm Cole-Frieman& ......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.