Volatility Vet Latest to Launch Crypto Hedge Fund Firm

  • Equity derivatives trader, Jacob Weinig, is set to become the latest institutional investor to launch a crypto hedge fund firm. 
  • The fund will be opening with Bitcoin and Ethereum options, but will move on to accommodate other cryptocurrencies.
  • According to Weinig, the focus will be on Altcoins, which don’t possess large market caps of the likes of Bitcoin and Ethereum.
  • DeFi projects are reportedly another big source of interest for the funds, with Solana and Luna Protocol high on the list.

As cryptocurrencies become more popular among institutional investors, crypto hedge funds, which allow individuals to invest in a carefully selected mix of cryptocurrencies, are also increasing in number.

Popular volatility veteran and equity derivatives trader, Jacob “Jake”  Weinig, is set to become the latest institutional investor to launch a crypto hedge fund firm. 

Meet Iceberg Bitcoin Income Fund

Iceberg Bitcoin Income Fund will be looking to open with Bitcoin and Ethereum options. Iceberg is currently headquartered in the Bahamas, but has an office in New York. The application for the crypto fund was submitted to the Securities and Exchange Commission (SEC) earlier in May.

The firm will be looking to hire additional analysts to evaluate crypto investments as the fund scales and gathers more assets. Due to his experience and time spent trading in the derivatives markets, Jake Weinig has attracted the eyes of some limited-partners.

Forrest Denton, a former Societe Generale stock options trader, will be joining Weinig on the management team, who holds the title of “Head of Research” for the firm.

Altcoins Are the Focus

The derivative space has been largely dominated by Bitcoin and Ethereum. However, Iceberg Crypto Opportunities Fund is looking to do things differently. The fund will be aiming to invest in those cryptos, popularly known as “Altcoins,” which are not current dominators in the market.

In discussing the funds, Weinig noted that “it’s going to be tremendously focused on alternative coins,” which he believes are “the next wave.” 

Regardless of the recent DeFi hacks, which have put a dent in the reputation of the asset class, many still believe that the future of finance is decentralized. Currently, Defi projects ‘Solana’ and ‘Luna’ look to be winning the race for the fund’s attention.

On The Flipside

  • Digital asset merchant bank, Galaxy Digital, has rolled out a new institutional DeFi fund.
  • Galaxy Digital collaborated with Bloomberg to launch the Bloomberg Galaxy DeFi Index.
  • Along with the launch, Galaxy Fund Management announced the Galaxy DeFi Index Fund, a passively managed fund tracking the performance of DEFI.

Who is Jake Weinig?

Jacob Weinig, also known as “Jake Weinig,” is a popular equity derivatives trader who is a founding partner and portfolio manager of Malachite Capital Management, a volatility-focused hedge fund firm. 

Before moving to Malachite Capital Management, Weinig was a longtime Goldman Sachs trader. Weinig became unpopular after he and Joe Aiken set, and lost, bets worth upward of $1.5 billion in volatility trades. 

This is not his first foray into the crypto industry, as the fund manager has been trading personal crypto funds. Weinig began by trading two crypto hedge fund vehicles, via his Iceberg Capital Group, with an undisclosed sum of day-one capital on July 1st.

Why You Should Care?

  • The increasing number of crypto hedge funds is a sign of the rising interest from institutional investors.
  • In addition to the gains they bring to the crypto space, the entry of institutional investors to the space works to solidify the position of digital assets as tomorrow’s medium of exchange.


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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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    Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.