• Cryptocurrency asset manager plans to raise hundreds of millions to actively invest in NFTs

  • Osprey Funds – a cryptocurrency investment firm that offers several investments in crypto assets for institutions – has announced that it is breaking into the market for non-fungible tokens (NFTs).Osprey will launch a new fund that could set the stage for the firm to invest hundreds of millions of dollars in this nascent market.

    The company is launching a new entity dubbed Osprey Alpha, LLC, which will offer institutional investors a fund that actively invests in NFTs across a wide range of assets, including collectibles, artwork and gaming assets. The firm has hired Justin Paterno as managing director and portfolio manager to lead this new effort.

    “Over time, we could have hundreds of millions of dollars in these funds,” Greg King, CEO of Osprey Funds, said in an interview.

    King said NFT is a new asset class for investors, unrelated to either the cryptocurrency market or the more traditional stock market.” He said, “That’s what we’re really excited about.

    The market for NFTs took off earlier this year, with OpenSea, the most popular NFT marketplace, having reached unicorn status.

    The average price of NFT sales in the art and collectibles category has soared to over $100,000. Despite this, the market is still largely dominated by retail players, given the lack of funds and institutional custodian products for larger investors.

    “Our business,” King said in a press release, “is to provide investors with exposure to the most exciting part of the digital asset ecosystem.” With Osprey Alpha, we will focus on developing and launching several unique, actively managed strategies for sophisticated investors, starting with our NFT product.”

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