The entire property underneath administration (AUM) of cryptocurrency hedge funds doubled in 2019 and reached $ 2 billion, in keeping with a report from PwC and Elwood Asset Administration Providers.
Since the finish of 2018, the common worth of AUM funds has elevated from $ 21.9 million to $ 44 million.
The share of hedge funds with property in extra of $ 20 million elevated from 19% to 35%. This section has change into the most quite a few.
Firm analysts divided the funds into 4 classes:
- discretionary long-term (which, as a rule, have the longest interval of blocking investor funds);
- discretionary long- and short-term (utilizing a hybrid technique);
- quantitative (buying and selling in the most liquid crypto property);
- with multi-strategy (which mix different methods).
Nearly 50% of cryptocurrency funds had been quantitative, the report says.
They've the finest common return of 58%. Median productiveness was increased with long-term discretionary funds - 40%. For each indicators, funds with multi-strategy took the backside line.
Profitability knowledge was supplied by hedge fund managers and was not verified by unbiased auditors, the research authors emphasised.
The overwhelming majority of funds final yr traded bitcoin (97%). Subsequent in reputation had been Ethereum (67%), XRP (38%), Litecoin (38%), Bitcoin Money (31%) and EOS (25%).
Final yr, the foundation of the funding base of cryptocurrency hedge funds was made up of household workplaces (48%) and rich people (42%).
Recall that regardless of the undeniable fact that the profitability of cryptocurrency hedge funds in 2019 turned out to be increased than the conventional ones, about 70 of them closed throughout the yr.
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