According to the news Agency Bloomberg, since the beginning of this year, at least nine cryptocurrency hedge funds ceased to exist. This is evidenced by the fact that the sites of these companies were closed down and social media accounts removed.
In Autonomous Research believe that the total amount of funds will be reduced by the end of this year, another ten percent.
A rapid increase in the value of bitcoin and other cryptocurrencies in the past year have resulted in more than 150 hedge funds, increasing their total number to 226. The profitability of cryptocurrency hedge funds at the end of 2017 increased by more than 1000%, but in 2018 she fell to 23.31%.
A decline in interest from investors noted even those hedge funds, which are firmly adopted their position. For example, the co-founder of hedge Fund Capital Multicoin Kyle Samani, in an interview with Bloomberg said:
«Leading funds, including Capital in Multicoin we are very concerned about the significant decline in the inflow of new funds».
Billionaire investor Mike Novogratz at the end of 2017 rejected the idea to launch its own cryptocurrency Fund, saying that the exchange rate of bitcoin soon will drop to $ 8,000. In January 2018 the largest cryptocurrency Fund Polychain Capital, operating assets of more than $ 250 million, rejected the idea of IPO.
Partner of the investment company Protocol Ventures Rick Marini (Rick Marini) believes that in the end will have about 50 funds that will work with large institutional investors.
However, despite all the negative, new funds continue to emerge, as the optimists are betting on volatile nature of the cryptocurrency market. Many believe that the value of cryptocurrencies will soon begin to return to the values of December 2017, after which growth will continue. The majority relies on the competition of bitcoin: Ethereum, Litecoin, Ripple.