UltrAlpha, the innovative comprehensive digital asset management service platform, announced that Algoz, the cryptocurrency arm of an algorithm-based trading company Fingenom Group, will join its upcoming test platform launch. Alpha Pro, another crypto asset manager with founding members being seasoned Wall Street insiders as well as blockchain pioneers, is also launching its digital asset management product on the UltrAlpha.
1. Current Market Development in Digital Asset Management Service Industry
With increasing recognition of digital assets all across the globe, a growing number of professional investment institutions are actively looking for opportunities to enter the digital asset market. However, one of the key challenges in the space is that potential investors have limited access to suitable financial products for their investment consideration, while trading teams or digital asset managers find it difficult to get to the right investors for fundraising. This is mostly due to the lack of a formal broker-dealer structure in the digital asset space.
In the traditional finance industry, broker-dealers play an integral role in the capital market where they connect potential investors with eligible investment products, as well as support clients in their trading and capital raising activities. However, this broker-dealer function is yet to be fully developed in the digital asset industry with less clarity on the overall regulatory framework.
Furthermore, with a lack of mature market structure and nascent development stage, the digital asset trading market has been quite volatile with inconsistent liquidity and inefficient price discovery, especially during the recent months of rapid price recovery led by bitcoin after the earlier harsh crypto winter. This unpredictable market condition has proved challenging for certain fund managers to generate a consistent return, yet also turned out to be more opportunistic for other trading firms with volatility-driven strategies.
2. The Strategic Partnership between Two Top-tier Asset Managers and One Innovative Service Platform
Driven by the market needs, UltrAlpha is seeking to build out its comprehensive product offering and service capabilities as an innovative digital asset management service platform through the strategic partnership with two industry top-tier asset managers, Algoz and Alpha Pro.