Cryptocurrency hedge funds have been skyrocketing since the last days of 2017 and the first weeks of 2018. According to research house Autonomous NEXT, crypto hedge funds have more than doubled during the last four months. On October the 18, 2017, there were 110 global hedge funds and as of February 15th there are 226. One year ago, there were just 37 hedge funds registered.
Cryptocurrency Hedge Funds Expanding
The cryptocurrency market has been expanding during the last year. Its total market capitalization almost reached one trillion dollars in December 2017. Everyone wants to participate form a market that has an incredible future potential. One way to be involved in this market is by investing in cryptocurrency hedge funds.
As of today, Bitcoin is being traded around $10,500 dollars’ after reaching $20,000 in December. Some days ago, the famous cryptocurrency was traded under $6,000 dollars.
Autonomous NEXT partner Lex Sokolin said:
“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% and high regulation before the flow of funds turns around.”
There are many investors that are placing their bets in hedge funds.
One of the most important rules when investing is “buy low, sell high.” And Mike Novogratz, macro fund manager at Fortress Investment Group (FIG), predicted the bear market that followed the all time highs. On December the 28th, 2017, he said that cryptocurrencies could reach again $8,000 dollars.
“Bitcoin could be at $40,000 at the end of 2018. It easily could. Ethereum which I think just touched $500 or is getting close, could be triple where it is as well,” Novogratz said. “There is a big wave of money coming not just there but all around the world.”
Because of what he thought it was a bear market back in December, he decided to put in suspense his idea of starting a hedge fund with $500 million dollars.
Other Important Funds
Coinbase Custody, is a platform created by Coinbase in order to attract big investors and hedge funds included. The cryptocurrency market did not have important platform that big investors could trust in.
Michael Arrington, TechCrunch founder, has also launched a cryptocurrency hedge fund. Back in November, he announced that he was creating a hedge fund denominated in Ripple (XRP) at a conference held in Ney York.
Some days ago, we wrote about Grayscale launching a new “digital large cap fund.” The portfolio will include five cryptocurrencies: Bitcoin, Ether, Ripple, Bitcoin Cash and Litecoin. As mentioned before, there are several investors ready to place their investments in this market. In the way that it is growing, in the future it can bring important returns to several investors and individuals.
“People do not know or care which coin will win. They just want to be in this asset class. We have people who want to put $100 million into this.”
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