Quantreq Capital Markets, an international provider of cryptocurrency capital market services, has launched with the first crypto fund-only administrator along with an OTC order-flow execution desk.
Quantreq was established to bring an institutional approach to the non-traditional market and says it will focus solely on the fund administration and capital markets for digital assets.
The firm starts with over $700m in crypto assets under administration, from across the globe including the US, Asia, and Europe.
Prominent fund clients administered by the firm include Sora Ventures, Hyperion Decimus, and Arca Funds and Quantreq presently connects with 13 exchanges, including Binance and Coinbase and seven OTC trading desks around the world.
Quantreq will offer a range of services specifically tailored to the needs of crypto fund managers and their investors, such as institutional crypto hedge fund administration, crypto market data and pricing and investor services.
The firm is unveiling a real-time risk analytics offering to bolt on to the client-facing portfolio management system by this September as well as its cryptocurrency market research group, which will be providing analyst coverage to Quantreq's Portfolio Manager clients’ in Q4 2018.
We have seen a huge uptick in institutional investments in the crypto space, both in the number of firms and the size of their buy orders. However, while many are comfortable with the investment thesis, they are not yet confident with the investment vehicles available. The launch of firms like Quantreq and Gemini will speed this up and this could be the year bitcoin and other cryptocurrencies get backed by an influential investor class: global pension and endowment funds.
If and when these custodians gain traction and a safe reputation institutional money will start to feel more comfortable.