Cryptocurrency Funds Coming Back to Life

May 15, 2018 James Heinsman Hedge Fund News

In case you were wondering where all the noise over cryptocurrency retreated to, you need wonder no more. After garnering much excitement at the end of 2017, when the year long gain notched a mouth-watering 1700 percent growth, (yes that’s 17 with two zeroes), the first quarter of 2018 was a bit bumpier. Eurekahedge observed its Crypto-Currency Hedge Fund Index dropped 6.04 percent in January, 13.21 percent in February, and 34.11 percent in March. Not something to write home about.

April saw a change in direction for this sector worth singing about, with a climb in value for that month alone of 83.86 percent. Currently the price of one bitcoin hovers at about $8300, leaving analysts and observers to speculate on the probability of the digital coin to reach $10,000, where it hasn’t been since early March. However, compared to where bitcoin was on December 18, 2017 when it reached an all-time high of just under $20,000, getting to $10,000 does not seem like such a big deal.

Although bitcoin has been showing signs of better health in recent weeks, it could be other cryptocurrencies that are fueling the Eurekahedge index growth. The second largest cryptocurrency by market cap, ethereum, grew by 70 percent in April. But Bitcoin Cash more than doubled its value during that same time span.

It might be hard to get a real overview of how cryptocurrencies are behaving since at the moment there are a tiny number of funds dedicated to investing in them-just seven on Eurekahedge’s index. But if digital money continue to dominate from now on, there is a good chance investors will take more of an interest in their performance and value.

bitcoin, crypto-currency, ethereum, Eurekahedge,

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