Hedge Funds Number Doubled
February 21, 2018
The Autonomous Next firm which is engaged in financial industry researches has declared, the number of cryptocurrency hedge funds has risen up to 226. As the statistics shows, the highest figures were observed during the period from mid-October to mid-February with their number having almost doubled in four months from 110 to 226.
“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 percent and high regulation before the flow of funds turns around”, as the company’s partner Lex Sokolin told.
Autonomous Next has reported, cryptocurrency hedge funds can manage funds from 3.5 to 5 bln dollars. Despite crypto assets price sag, hedge funds have a nice average profit of 1477,85% provided managing assets to the tune of 1 bln dollars. As the founder to fin-tech company Bitspread Cedric Jeanson says, high income is caused by high commission fees the customers have to pay. Hedge funds set up to 1.6% charge for managing and 17.5% for the client’s portfolio growth regardless of passive strategies in some cases.