Los Angeles-based hedge fund AlphaTriAI is rising funds for two new portfolios which will aim to reduce the volatility of the digital assets by investing in a broad range of popular cryptocurrencies, including bitcoin and ether, according to a report by Financial Review.

Both bitcoin and ether have suffered sharp drops in value recently during a broader period of digital assets volatility, but the new portfolios will employ AI to to identify potential future growth periods for up to 40 cryptocurrencies and then spot when technical factors indicate near-term selling pressure so that holdings cab be shorted accordingly.

One of the portfolios will empty a a low-beta strategy and avoid stablecoins altogether, while the second – a managed volatility strategy – will comprise a  a mix of long and short positions.