Number of Cryptocurrency Hedge Funds Rises to 226 Globally

The number of global cryptocurrency hedge funds has reached a record high of 226, according to research firm Autonomous Next. The hedge funds tracked by leading hedge fund database provider Eurekahedge show a return of 1,477.85 percent in 2017 on average.

226 Crypto Hedge Funds

According to Autonomous Next, the London-based fintech practice of Autonomous Research, the number of hedge funds focused on trading cryptocurrencies more than doubled in the past four months. Reuters reported:

The number of crypto hedge funds more than doubled in the four months to Feb. 15…The research firm recorded a record high of 226 global hedge funds with such a strategy, up from 110 global hedge funds as of Oct. 18.

On August 29, the number of crypto hedge funds was only 55, and it was only 37 at the start of 2017. Furthermore, the firm revealed that assets under management of the funds are currently between $3.5 and $5 billion.

Autonomous Next partner Lex Sokolin commented:

While the softer prices of crypto assets do create a more difficult environment for investors, I do not think it will pause the influx of funds and other financial institutions building products in the space…It would take the extreme case of the entire space contracting by 80 percent and high regulation before the flow of funds turns around.

Crypto Funds Gained 1,478% in 2017

According to an independent hedge fund data provider, Eurekahedge, cryptocurrency-focused funds lost an average of 4.6 percent in January. “Some invest in just bitcoin, taking both long and short positions, some buy a basket of cryptocurrencies and others exploit the arbitrage between different exchanges’ prices,” Reuters further noted…

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