Report suggests that 70 crypto hedge funds shut down in 2019
|- The number of new funds launched in 2019 is reportedly less than half the number of launches in 2018.
- The hedge funds largely catered to institutional investors like pension funds and family offices.
Approximately 70 hedge funds specializing in crypto have closed this year. The hedge funds catered mainly to institutional investors like pension funds and family offices. According to Bloomberg, a study by US-based Crypto Fund Research says that the number of new funds launched in 2019 is less than half the number of launches in 2018.
North America had the highest number of crypto fund closures at 28. This was followed by Europe and Asia-Pacific with 23 and 14 crypto fund closures, respectively. Institutional investors have disowned bitcoin and other cryptocurrencies due to their inherent volatile nature.
According to a report, Nic Carter, the co-founder of crypto market tracker Coin Metrics, said:
The market is definitely retail-driven and will remain so for the foreseeable future.
In total, there are around 804 cryptocurrency funds at present. According to Crypto Fund Research’s website, out of those 804 cryptocurrency funds, 355 are hedge funds and 425 are venture capital funds. Arrington XRP, BlockTower Capital, Brian Kelly Capital Management, Digital Currency Group and Fenbushi Capital are the top five cryptocurrency funds, as per the researcher.
Spencer Bogart, general partner at Blockchain Capital, said:
To me, the fact that there is any institutional adoption for Bitcoin only 10 years into existence is a radical success and beyond what anyone could have imagined just 3 or 4 years ago.
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