5 Best Cryptocurrencies to Invest in According to Hedge Funds

4. Polkadot  

Polkadot is a proof-of-stake crypto network that markets itself as a connector among public blockchain networks. It is placed fourth on our list of 10 best cryptocurrencies to invest in according to hedge funds. The network allows different systems to work under one roof. Polkadot also offers developers using its platform the ability to use the security system of Polkadot for their new digital currencies, thereby making new currencies less susceptible to attacks or hacking from the outside. 

As Bitcoin price falls, investors are looking for new crypto investments with explosive growth potential. One of these is certainly Polkadot, with news reports suggesting that FD7 Ventures, a Dubai-based hedge fund with more than $1 billion in assets under management, is considering selling the $750 million in Bitcoin it held in favor of buying Polkadot. This move is part of a plan by the fund to diversify investment in the crypto market that is rapidly expanding across the globe.

American electric vehicle maker Tesla, Inc. (NASDAQ: TSLA) is one of the first big companies to directly accept crypto payments for sales. However, it has halted these transactions temporarily amid environmental concerns around coin mining operations. Tesla, Inc. (NASDAQ: TSLA) holds more than $1 billion in Bitcoin. 

Out of the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Tesla, Inc. (NASDAQ: TSLA) with 24 million shares worth more than $16 billion. 

Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ: TSLA) in its Q1 2021 investor letter:

“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”