5 Best Cryptocurrencies to Invest in According to Hedge Funds

3. Ripple

Ripple, released in 2012, is a cryptocurrency made by Ripple Labs. It is ranked third on our list of 10 best cryptocurrencies to invest in according to hedge funds. Ripple uses a lean mechanism for hosting transactions of its network, and is one of the most popular cryptocurrencies on the market today. Ripple Labs has developed the Ripple exchange and the Ripple remittance network as well to complement the success of the cryptocurrency. 

Despite the hype around the two largest cryptocurrencies, Bitcoin and Ethereum, smaller ones like Ripple also have strong growth fundamentals that smart investors would do well to notice. As early as 2017, tech mogul Michael Arrington had announced the Arrington XRP Capital, a $100 million hedge fund focused on the Ripple cryptocurrency that has since exploded in value and added other cryptocurrencies to its profile to build on the Ripple success.

Ripple and many other cryptocurrencies have also grown thanks to the trust shown in blockchain technology by companies like American payments firm Square, Inc. (NYSE: SQ). Square, Inc. (NYSE: SQ) reportedly holds more than $400 million in crypto assets and has seen share price fall in recent weeks amid a broader market downturn around crypto-related stocks in general.

At the end of the first quarter of 2021, 92 hedge funds in the database of Insider Monkey held stakes worth $9.2 billion in Square, Inc. (NYSE: SQ), up from 89 in the preceding quarter worth $8.8 billion.