Initial coin offerings are no longer the “hot” topic in the cryptocurrency world. It seems there is a new winner – cryptocurrency hedge funds.
According to PRWeb, around 90 cryptocurrency hedge funds were started in the first three quarters of 2018. The total number is expected to go to 120.
It is interesting to notice the trend with crypto hedge funds. Regular hedge funds are usually founded when the markets are up. Crypto hedge funds, however, seem to flourish even with Bitcoin and Ethereum losing almost half of their value from December 2017.
Crypto Fund Research shows that 2018 will see around 600 hedge funds in total, out of which 120 are cryptocurrency ones. These “digital coin” hedge funds usually invest in established cryptocurrencies, such as Ethereum, Ripple and Bitcoin. Others invest in ICOs, even though this is not so common.
In 2016, cryptocurrency hedge funds accounted for around 3% of all hedge funds founded that year, in 2017 – 16% and now, in 2018, the percentage went up to 20%.
Despite the rapid growth of cryptocurrency hedge funds, the assets they manage are around $4 billion, while the global hedge fund sector manages more than $3 trillion.
The countries that enjoy the highest surge in cryptocurrency hedge funds are the United States, Switzerland, Malta, the Netherlands and other.