Investing and Global Finance News

Crypto Hedge Funds?

There has been quite a lot of volatility with crypto hedge funds over the last few months.  But does this mean that they should be completely discounted?  Should we take a break for a while, or make that long term? Adding to this issue is Americans lack of understanding of its regulatory status.

Still, having said all that, a recent  CryptoGlobe report suggests quite the opposite, and that investing in hedge funds has actually increased in 2018.    Crypto Fund Research data found statistics from last month as being: 216 investments in these funds (216 investments for the entire 2017 year).  So it’s not so surprising that there is an escalation in popularity of the cryptocurrency hedge fund space.

Looking at crypto-related Venture Capital we also see an upswing this year, with Digital Currency Group leading the blockchain VC funds having made 58 investments (worth $78 million). According to Josh Gnaizda, CEO of Crypto Fund Research:

“the four criteria we used [reflect] not only total investment but also how long they’ve been investing in blockchain and how active they are today, not just a year or three ago … the industry is changing rapidly. So what’s most accurate today won’t be as correct next month.”

In conclusion, even though right now crypto markets are somewhat ‘volatile,’ according to Henri Aslanian of PwC, “the long-term positive impact of the number of institutional players entering cryptocurrency investment is more important than short-term price fluctuations.”

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