The research company Crypto Fund Research reported that over 70 cryptocurrency hedge funds have closed over the past year, and the number of new funds has halved compared to 2018.
According to Crypto Fund Research, institutional investors continue to be aloof from cryptocurrency funds due to significant market volatility.
“The market is definitely focused on retail investors and will remain so for the foreseeable future,” said Nic Carter, co-founder of Coin Metrics.
Most cryptocurrency hedge funds – 28 – were closed in North America. In Europe, 23 funds closed, and in the Asia-Pacific region – 14. Currently, there are a total of 804 cryptocurrency funds, of which 355 are hedge funds, and 425 are venture funds. At the same time, if in 2018 284 cryptocurrency funds were launched, then this year the number of new funds decreased to 128.
“The fact that institutional investors generally recognized Bitcoin as an asset in just 10 years of its existence is a huge success that no one even thought about 3-4 years ago,” says Spencer Bogart, a partner at Blockchain Capital.
Recall that a recent study by The Block analyst Ryan Todd showed that cryptocurrency hedge funds put Bitcoin futures down this fall.