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Reminiscence and Intricacies of Cryptocurrency Hedge Fund Strategies

There has been a vast increase in the number of hedge funds paying attention to cryptocurrency. While we reiterate by stating daily trading opportunities into cryptocurrency space aren’t meant for the open public. To meet out this requirement, as well as to reach out a new group of investors, many exchanges are launching their own crypto index funds. Managing multiple cryptocurrencies is time-consuming, with so many options available and so much research necessary.

Let’s just glance at various options of the crypto-index fund that are readily available in the market and who all can invest, and what obstacles crypto index funds confront moving forward.

We have stated about some distinguished hedge funds, such as Crypto20, The Cryptocurrencies Index (CCi30), Coinbase Index Fund LP (CBI), Hold 10 and Crush Crypto Core (CCC). In this write-up, we emphasize on a couple of other predominant hedge fund companies dealing cryptocurrencies, namely, Zilliqa, 0x, OmiseGo, Aelf, and Golem.

As and when new cryptocurrency hedge fund arises, it appears to gain huge attention fairly quickly. Well, there exists a sensible reason for that, as cryptocurrencies are still exceedingly appealing to uninformed consumers. Investors prefer to be exposed to volatility through hedge funds, rather than buy their own coins from exchanges or ATMs.

Simultaneously, one has to wonder what these cryptocurrency hedge funds are really investing in. Unlike what most people might expect, there aren’t too many companies which actually hold Bitcoin or Ethereum at this stage. That is according to an infographic shared with us via email. Instead, we see some other interesting projects listed, even though there are not many actual cryptocurrencies on this list.

Two of the projects receiving some attention among hedge fund managers are TRON and ICON. Several of these companies invest in Zilliqa, which won’t come as much of a surprise to most people. 0x, OmiseGo, Aelf, and Golem are also relatively popular among hedge funds. Other notable names include Fusion, Orchid, Bancor, and Merculet. All things considered, it’s a well-balanced portfolio for most companies.

While this only represents a sampling of the cryptocurrency hedge funds out there, an interesting trend is evident. With so many hedge funds diversifying their portfolios to include altcoins and ICO tokens, it seems there is still a fair amount of hype associated with all of these projects. The ones which have received a lot of solid backing may be in the best position to succeed in the years to come.

Nonetheless, umpteen number of issues facing these hedge funds. Their ROIs for 2018 are still in the worrisome after the stellar year of 2017. Even so, the month of April was a lot more positive in this regard, and potentially May as well. Unfortunately, the negative momentum present in the first half of 2018 has forced nine crypto funds to shut down so far. Despite those losses, 20 new funds have popped up, which will be an interesting statistic to monitor as the year progresses.

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