According to Autonomous Next, a research firm, the number of crypto hedge funds in circulation in the world is more than 226; a figure touted to be the highest in recent history. In 2017, the hedge funds monitored by Eurekahedge, a reputable database provider showed that on the average, the percentage of hedge funds in circulation is around 1,477.85.
226 Crypto Hedge Funds
Going by the report of Autonomous Next, the number of hedge funds used to trade cryptocurrencies in the last four months is more than double.
“Cryptocurrency hedge funds in the last four months have increased to about 226, compare to the number as at the 18th of October 2017, which stood at 110,” Reuters reported.
As at August 29th, 2017, cryptocurrency hedge funds were reported to be around 55, up from 37 in early 2017. In addition, the database company confirmed that the total assets under the hedge funds purview stood at $3.5 to $5 billion.
“The fact that cryptocurrency assets prices pose a serious challenge to investors; it won’t deter the influx of financial products as well as funds in the crypto space. Before the flow of will nosedive, it would be as a result of high regulation,” Lex Sokolin, a partner with Autonomous Next asserted.
In 2017, Crypto Funds Gained 1,478%
In January, Over 4.6 percent of crypto-based funds were lost, according to Eurekahedge, a data provider who works independently said.
“Some investors only invested in Bitcoin, some bought into several digital currencies, while others leveraged on the concept of arbitrage to invest at different prices. Eurekahedge is currently monitoring close to 9 hedge funds with a cumulative worth of $1 billion. The company asserted that these 9 hedge funds made over 1,477.85 percent on the average.” Reuters further reported.
Cedric Jeanson, the CEO of Bitspread, a reputable blockchain firm posited that “Most hedge funds charged clients between 1.6 and 17.5 percent as management and performance fees respectively. This figure was monitored by Eurekahedge.”
Diana Gibson, the Chief Executive Officer of investment consultant Cambridge Associates, declared that “the gains made by hedge funds were largely as a result of being long”.
Since the launch of Pantera Capital in 2003, it has returned over 25, 0004% as at December 2017. According to information released by Bitstamp, the reported gain was as a result of the high prices of Bitcoin, which was valued at $19,666.