These are the Pioneers Linking Hedgefunds to Cryptocurrency


There are currently over 90 funds launched this year alone that are focused solely on digital assets such as bitcoin and other forms of cryptocurrency. This means that there are currently over 124 “crypto-funds” according to research from the financial firm “Autonomous Next.”

The data show that out of all of those funds, only 37{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca} used venture-capitalist techniques to trade around $1.1 billion in assets. 32{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca} focused on trading digital assets with around $700 million in asset management.

The funds that are specifically dedicated to machine learning, data science, or other statistical methods, took over about 10{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca} of the market with around $100 million in asset management.

READ ON: The Best Way To Invest In Bitcoin?

The assets that are managed by these crypto-funds total to about $2.3 billion according to estimates by the aforementioned financial firm.

The price surge over the course of this year in the cryptocurrency market has led many to invest in the industry. The bulk of the attention in the market is due to the revolutionary technology known as blockchain. The high amount of potential for blockchain to revolutionize different markets. Banks have begun to invest in the technology behind blockchain and how to utilize it within their business models.

Given the recent surge in price of bitcoin, many investors are joining the space. The hopes are that the hard fork in both of the top cryptocurrencies by market capitalization will not have too long before the price bounces back. The former hedge fund manager of fortress, Michael
novogratz has stated that they are launching a $500 million digital asset fund through a new firm known as Galaxy Investment Partners.

With all the interest in cryptocurrency reaching all-time highs, it is only a matter of time before the economy around the world is transformed by this revolutionary market.


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