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Our legal counsel has been quoted in leading financial publications, including Forbes, Entrepreneur, Business Insider, and others. 

Cryptocurrency funds want to branch out but held back

Three issues — regulatory hurdles, liquidity and cybersecurity — are the main concerns for larger custodians around cryptocurrencies, said John Lore, managing partner, Capital Fund Law Group PC, New York, whose clients are managers of hedge funds and alternative investments.

SO, WHERE ARE ALL THE INSTITUTIONAL INVESTORS AT?

 John Lore, managing partner at Capital Fund Law Group PC, claims that “it’s really too soon to determine what cybersecurity risks will need to be dealt with. There aren’t enough custodians who are capable of handling that risk yet.”

“East Coast Universities Invest in Crypto Hedge Funds”

Academic institutions in the US have started making small investments into cryptocurrency hedge funds, according to a lawyer working in the industry. These universities are getting involved on a limited basis for strategic reasons, the founder of Capital Fund Law Group, John Lore, told Business Insider. “I can’t say the names because that’s attorney-client but we have people mostly on the East Coast that have begun doing investments in this space on a fairly modest basis,” he added.

“Unique Security Risks Posed by Cryptocurrency Investing: Steps Fund Managers Must Take to Protect Individuals With Access to Client Assets”

Behind a paywall, but this is the article where John is quoted discussing the specialized challenges service providers face when handling cryptocurrency and the protective measures that fund managers can take when investing in cryptocurrency, such as second-signer requirements, to ensure there are no irreversible transfers of digital assets without proper approval.

“American Universities Show Interest Cryptocurrency Hedge Funds”

Capital Law Group is working hard to become an expert in cryptocurrency investment. They have provided consulting services for about 30 digital currency hedge funds. The company is helping potential investors understand this market, which currently lacks regulation. Lore commented that most of the investments he saw in crypto-hedge funds came from ‘high net worth individuals and, on a very limited basis, family offices.’

Universities are starting to invest in crypto, according to an industry lawyer

Lore said that the majority of investment in these new funds comes from "high net worth individuals and, on a very limited basis, family offices."
"Yes there are investors but at this point, investors are putting in very small percentages of their net worth as we would expect and as I believe is appropriate," Lore said.
He said he doesn't expect to see institutional investors such as pension funds invest in crypto any time soon, due to regulatory uncertainty and the lack of a track record for many funds. One exception is university endowment funds, some of which have begun to invest in the space on a limited basis.

“Universities Have Started to Invest in Bitcoin, Start of Institutional Adoption”

According to John Lore, the founder of Capital Fund Law Group, academic institutions and universities have started to get involved in the cryptocurrency market, acknowledging the long-term potential of cryptocurrencies like bitcoin and ethereum.

Crypto Trader Apologizes for 1200% Gains

Seeing stories like the one above, it's easy for even seasoned asset managers to forget the extreme risks associated with the cryptocurrency space. Lore's words of caution for would-be cryptocurrency investors and hedge fund managers ring true across the industry. It's important to remember that the cryptocurrency millionaires are likely the extreme exception, rather than the rule.

Universities are starting to invest in crypto, according to an industry lawyer

John Lore, the founder of Capital Fund Law Group, told Business Insider: "We’re seeing some academic institutions getting involved on a limited basis for strategic reasons.

"I can’t say the names of [the academic institutions] because that’s attorney-client but we have people mostly on the East Coast that have begun doing investments in this space on a fairly modest basis."

Lawyer Says Universities in the US Investing in Crypto Hedge Funds

New York-based law firm Capital Fund Law Group Lawyer John Lore who specializes in cryptocurrency hedge funds said that some universities are making small investments in digital assets. He claims that crypto hedge funds are currently proving an attractive opportunity for academic institutions on America’s east coast.

Academia Endowment Funds of Top US Universities Are Crypto Investors & Holders

While we cannot pinpoint which specific cryptos their funds rest at or universities they represent, John Lore, a lawyer, and owner of the Capital Fund Law Group said portfolio managers of these Endowment Funds are finding cryptocurrency yields irresistible. John Lore’s firm specializes in providing legal advice to hedge funds.

Cryptocurrency Morning Brief

United States universities have been making small investments in digital assets. John Lore, a lawyer specializing in cryptocurrency hedge funds, has stated that some universities on the East Coast have been investing in cryptocurrencies on a modest basis. The firm that Lore works for has already advised 30 digital cryptocurrency hedge funds. Lore also noted that most of the capital that is funding cryptocurrency hedge funds comes from high net worth individuals and some family offices

A crypto trader setting up a hedge fund apologized for making so much money

Lore is the founder of Capital Fund Law Group, a New York firm that specializes in advising hedge funds and asset managers. Lore told BI he has seen a huge spike in the number of inquiries from people looking to set up cryptocurrency hedge funds.

Universities Are Some of the First Institutions Investing in Crypto Hedge Funds

The Capital Fund Law Group are emerging as specialists for the cryptocurrency investment space. They’ve already advised around 30 digital currency hedge funds. The firm has helped potential providers navigate the space that still suffers from a lack of regulation. Lore commented that most of the investment that he’d seen in crypto hedge funds were coming from ‘high net worth individuals and, on a very limited basis, family offices.’

Financial Authorities in Germany Find Six Institutions Trading Cryptos

Academic institutions in the US have started making small investments into cryptocurrency hedge funds, according to a lawyer working in the industry. These universities are getting involved on a limited basis for strategic reasons, the founder of Capital Fund Law Group, John Lore, told Business Insider. “I can’t say the names because that’s attorney-client but we have people mostly on the East Coast that have begun doing investments in this space on a fairly modest basis,” he added.

A top crypto hedge fund lawyer explains the 4 main trading strategies that funds use to make money

Crypto hedge funds have exploded in popularity over the last year, with over 250 globally.
Capital Fund Law Group has advised 30 that have been set up.
Capital's founder John Lore tells Business Insider about the four main strategies he's seen funds employing, why most funds are under $150 million in assets, who is investing in the funds, and why he thinks the boom is over.

Seeing Past the ICO Sparkles: A Due Diligence Cautionary Tale

...The case should serve as a reminder that investors as well as money managers serving as stewards of their clients' financial resources (not to mention their own reputations) need to take reasonable steps to undertake  due diligence when researching the viability of an investment...

Business and Legal Issues in Raising Capital for Cryptocurrency Funds

Initial fund capital is the best predictor of success in raising capital, Lore noted, because it inspires confidence in subsequent investors, spreads costs and provides “outside viability.” A manager starting a small fund should have at least $1 million to $5 million committed to ensure success in raising additional capital. Sources of initial capital often include the managers themselves; professional associates; and family and friends (although, outside investors may not see family-based investor assets as “merit-based”).

Harvard undergrads will launch a cryptocurrency fund, starting at $1m

Lore is working with Hamid pro bono. The two also plan to launch the Global Center for Investment Fund Studies, to help new fund managers raise capital, at Harvard this month. Setting up a fund can involve filing with the Securities and Exchange Commission, as well as finding a fund administrator and, potentially, a custodian.

 

 

FxWirePro: Harvard’s budding entrepreneurs to create crypto-hedge fund

Hamid has been apparently contacting attorney John Lore for assistance in building funds as for the cryptocurrency hedge fund industry, it seems the ideal time to start up the infrastructure to set up a fund

 

 

Four Harvard students jump into the crypto hedge-fund craze” – New Zealand Herald

"Emerging cryptocurrency funds see this an opportunistic time to start up the infrastructure to set up a fund," according to Lore, who said he gets about six or eight inquiries daily from aspiring crypto fund managers. "What that means is that at least fund managers are very bullish on the long-term aspects of cryptocurrency in varied investment strategies."

 

 

Tennis Star Endorses ‘Lympo’: A New Era of Celebrity Blockchain Endorsements?

Former SEC prosecutor and partner at Capital Fund Law said that the lesson for celebrities is to “know what [they’re] endorsing.”

 

 

Four Harvard Teens Set Up Plympton Crypto Hedge-Fund

According to attorney John Lore “Emerging cryptocurrency funds see this an opportunistic time to start up the infrastructure to set up a fund. What that means is that at least fund managers are very bullish on the long-term aspects of cryptocurrency in varied investment strategies.”

 

 

Four Harvard Students Jump Into the Crypto Hedge-Fund Craze 

To get started, Hamid reached out to attorney John Lore, who she says has helped set up more than 30 crypto hedge funds. "Emerging cryptocurrency funds see this as an opportunistic time to start up the infrastructure to set up a fund," according to Lore, who said he gets about six or eight inquiries daily from aspiring crypto fund managers. "What that means is that at least fund managers are very bullish on the long-term aspects of cryptocurrency in varied investment strategies."

 

 

Warning Celebrity Cryptocurrency Endorsers: You May Be Sued For Promoting Fraud ICOs

Beth-ann Roth, a former SEC prosecutor and partner at Capital Fund Law, agreed. “[The lesson for celebrities is to] “know what you’re endorsing,” Roth told the FT, saying promoters could be charged with aiding and abetting the alleged fraud.


 

 

Celebrities Warned Over Risk of Cryptocurrecny Endorsements

Beth-ann Roth, a former SEC litigator and partner at Capital Fund Law, said that in cases as the Centra ICO, there was also a risk that promoters could be found to have “aided and abetted” the alleged fraud. The lesson for celebrities, she added, is “know what you’re endorsing”.


 

 

Onus Is On Celebrity ICO Pitchmen For Greater Due Diligence

Beth-ann Roth, an investment funds partner at Capital Fund Law Group, said it behooves celebrity endorsers to consult with a securities attorney if they are invited to promote an ICO, or any investment offering, for that matter.

“They have an obligation before accepting that kind of engagement to do their due diligence. They need to make sure they’re getting the right answers,” Roth said.

Celebrities, according to Roth, need to know that their due diligence obligations are heightened when they promote investment products since those products are regulated under the securities laws.

“They have to understand that their endorsements matter to many people and could influence peoples’ decisions,” Roth said. “Technically, they could be found liable, so they need to exercise extra caution when undertaking these types of representations.”

 

Ripple is the worst performer among major cryptocurrencies in the first quarter

"There's a lot of short-term trepidation based on regulatory uncertainty based on the SEC, with what the European Union is doing, and what various Asian regulators are doing," said John Lore, managing partner at Capital Fund Law Group.

Lore's firm advises hedge funds and private equity groups in the crypto-space. He said he's seeing an "unprecedented" number of new fund starts continuing from February.

"I think the sell-off this year has more to do with short term concern than any long-term general distaste for the asset," Lore said.

 

 

SEC’s Crypto Hedge Fund Probe is Healthy For The Industry

The SEC’s desire to interview cryptocurrency hedge funds, the only asset managers currently operating in the space, seems a logical next step in the development of the digital asset regulatory framework. The probe also underscores the fact that the SEC takes the crypto hedge fund space very seriously and will continue to keep a close eye on it moving forward.

 

 

The Five Keys To Marketing An Emerging Service or Product

“According to John S. Lore, Esq., owner of Capital Fund Law Group, PC, ‘When selecting service providers, including an attorney, administrator, and auditor, the management should consider the professional background of each provider. The level of quality of the service providers says much about the quality of the corporation’s management and business plan. Before smart people will invest in or purchase anything they seek signs of competence and stability from all tiers of the organization.

 

 

4 Options For Raising Capital From Friends, Investors or Even The Feds

"An accredited investor is an investor that meets the income or net worth tests established by the SEC," says John Lore, managing partner of Capital Fund Law Group. "For individuals, the investor must have a net worth or joint net worth with his or her spouse exceeding one million dollars or meet a $200,000 per year annual income threshold ($300,000 if combined with spouse)."

 

 

In 2014 and 2015, Capital Fund Law Group was recognized for its investment fund expertise by Wealth and Finance International, a global investment publication, in its 2014 and 2015 Alternative Investment Awards.

 Wealth and Finance International | Alternative Investment Awards

“What you need to know on Wall Street today” 

Cryptocurrency traders have become well-known for conspicuous displays of wealth.
Rows of Lamborghinis were parked outside the recent Consensus conference in New York and some attendees blew off steam at after parties in exclusive clubs with champagne, vodka, and even drugs.
But not all crypto enthusiasts are so ostentatious. John Lore, a lawyer who has advised over 30 cryptocurrency hedge funds, said one trader who approached him about setting up a fund, in fact, apologized to him, embarrassed by his crypto riches.