Are crypto hedge funds legal? The CFTC, which regulates commodities, futures, swaps and currencies, has stated that Bitcoin and other cryptocurrency will be treated different than currency under the Commodities Exchange Act of 1934 (Commodities Act), since it does not have legal tender status in any jurisdiction.
Can I start my own crypto hedge fund? Start a hedge fund to be your boss, to manage your funds, and to be profitable. Expose your investors to the crypto market to maximize profits. You don’t have to register your fund as there are no strict regulations. In case it is a private partnership, your investors will be your limited partners.
How does a crypto hedge fund work? A cryptocurrency hedge fund is a partnership that uses cryptocurrency to try and make large short-term profits. Cryptocurrency is very volatile, making a hedge fund based on it even more volatile than hedge funds based on other investment types.
Is crypto investment legal? So, Bitcoin and cryptocurrency trading are now legal, but initial coin offerings and asset funds are still illegal.