Cryptocurrency
Crypto hedge funds grew last year even as bitcoin slumped – report via @Reuters
As reported by Reuters, “Cryptocurrency hedge funds managed three times more in investments in the first quarter of this year than in early 2018, a report by consultancy PwC and investment firm Elwood showed on Monday. “The research showed that crypto hedge funds managed a median $4.3 million between January and March, compared with $1.2 […]
As reported by Reuters, “Cryptocurrency hedge funds managed three times more in investments in the first quarter of this year than in early 2018, a report by consultancy PwC and investment firm Elwood showed on Monday.
“The research showed that crypto hedge funds managed a median $4.3 million between January and March, compared with $1.2 million in January 2018, suggesting demand for exposure to crypto held up even as bitcoin slumped in price by 75%.
“The sums under management remain a fraction of those for more established assets.
“Bitcoin, the original and best-known cryptocurrency, peaked in December 2017. Since then, the retail-oriented cryptocurrency market has become dominated by hedge funds, crypto-related companies and wealthy individuals, with individual investors mostly fleeing and mainstream investors largely absent.
“The health of crypto hedge funds thus offers a window into demand for exposure to the wider market.
“Several funds failed last year, the report said, leaving the industry highly fragmented. Around 150 active cryptocurrency hedge funds manage a collective $1 billion in assets, with more than six in 10 funds managing less than $10 million. Fewer than 10% oversee assets of over $50 million, the research showed.
“‘The crypto hedge fund industry today is probably where the traditional hedge fund industry was in the early 1990s,’ Henri Arslanian, who oversees cryptocurrencies at PwC, said in a statement.”