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Mark Gilbert

Hedge Funds Seek the Amazon of Cryptocurrencies

Finance billionaires are betting increased regulation will broaden participation on digital currency exchanges.

Looking for a place to trace

Looking for a place to trace

Photographer: Edward Smith/Getty Images

During a gold rush, invest in shovel makers, goes the adage. That’s precisely what hedge funds looking to get in on the excitement around cryptocurrencies are doing with a flurry of investments in platforms created to buy, sell and store virtual currencies.

At the same time, regulators around the world are asking more questions about how much protection any companies handling crypto assets should offer investors. Tighter rules look inevitable if the market for digital currencies is to become anything more than a sideshow in the world of finance.