The number of cryptocurrency hedge funds continues to grow amid its volatility. According to the Autonomous NEXT study, there are now 226 global hedge funds in the world. Back in October 2017, there were only 110 of them, and at the beginning of last year 37. The total share of their assets is estimated at $ 3.5 to $ 5 billion.
Compared to the peak price at the end of 2017, when bitcoin cost nearly $ 20,000, in early 2018 it lost 70% of its value. After it, the entire market of cryptocurrencies fell.
According to the Eurekahedge industry tracker, in January hedge funds focused on cryptocurrencies lost an average of 4.6%, while on average the hedge funds' return for this period was 8.25%.
However, Autonomous NEXT experts believe that this will not stop the flow of investment in cryptocurrencies and the creation of new investment funds. Strategies for the funds are different: some invest in bitcoin in long and short positions, some are invested in a basket of cryptocurrencies, and the rest earn on the difference between rates on different exchanges.