Investors Betting on Cryptocurrency Funds

May 22, 2019 James Heinsman Hedge Fund News

The first quarter of 2019 was a good one for cryptocurrency hedge funds. Total AUM (assets under management) exploded by three times in that period, according to research.

Investment company Elwood Asset Management partnered with PwC, a consultancy firm, to publish a report that found the median crypto hedge fund AUM was worth $4.3 million by the end of March 2019. Compare that number with $1.2 million AUM at the beginning of January.

Analysts say that the findings show that the funds have been “relatively successful” at finding money even though market conditions have recently been bearish.

The study was based on interviews with 100 crypto hedge funds. It was also revealed that the average fund managed about $21.9 million as of Q1 2019. It showed that about 60% of funds have less than $10 million AUM, while less than 10% have more than $50 million.

The report also stated that crypto hedge funds did better than bitcoin last year. The cryptocurrency known as bitcoin lost about 72% of its value in 2018, but the median crypto hedge fund only lost 46% during the same time frame. The report said this showed that “these managers were successfully able to outperform their benchmark.”

Elwood Asset Management, PwC,

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