As I mentioned earlier in the week, bitcoin/cryptocurrency focused hedge funds have been exploding as of late.
More about that can be read here:
https://steemit.com/cryptocurrency/@jrcornel/crypto-hedge-fund-creation-has-exploded-in-the-last-couple-months-but-it-s-only-the-beginning
However, the numbers from last week are already being dwarfed.
As of last week it was reported that there were 110 cryptocurrency focused hedge funds in existence, today, a mere 5 days later, that number has swollen to 124.
That means 14 new funds were created in less than a week!
Over the last couple months we were averaging about 2 new hedge funds created per week.
According to the latest data (the data provided by financial research firm Autonomous Next), it appears even that 2 per week number is now being dwarfed!
The amount of money being managed by these funds has also risen from $2.2 billion to the current estimate of $2.3 billion.
That doesn't even include the $500 million dollar fund Michael Novogratz is set to launch in January of next year.
Which, by the way, would make it the largest of its kind.
Basically, all the data is just telling us what we already know, the space is booming.
Why is this interesting?
It's not that surprising that there is so much interest in the space, I mean bitcoin and cryptocurrency are in the news and making headlines just about every single day.
However, it is interesting because this is happening at a time when other major Wall Street professionals are being very critical of bitcoin and cryptocurrencies.
From Jamie Dimon, to Warren Buffet, the list seems to get longer by the day of Wall Street tycoons bashing bitcoin.
All the while more and more hedge funds are quietly coming on to the scene and giving their investors what they want.
By the way, the $2.3 billion in cryptocurrency is still minuscule when compared to the $3.2 trillion that makes up the entire hedge fund industry.
Who is right?
Is it the guys publicly bashing bitcoin and cryptocurrency on a daily basis, or the ones putting their money into these things while everyone else is bashing them?
Tough to say at this point.
Perhaps some of this is even orchestrated...
You mean Wall Street might use a form of deception to pick up one on mom and pop investors?! No, they wouldn't do that... would they?
Stay informed my friends.
Sources:
https://www.cnbc.com/2017/10/27/there-are-now-more-than-120-hedge-funds-focused-solely-on-bitcoin.html
Image Sources:
https://seekingalpha.com/article/4081337-hedge-fund-metamorphosis-2017
https://cointelegraph.com/news/jp-morgan-chase-ceo-jamie-dimon-bitcoin-is-going-to-be-stopped
