The variety of hedge funds centered on buying and selling cryptocurrencies greater than doubled within the 4 months to Feb. 15, regardless of sharp falls within the worth of the digital cash in latest weeks, knowledge from fintech analysis home Autonomous NEXT confirmed on Thursday.
The agency recorded a report excessive of 226 world hedge funds with such a technique, up from 110 world hedge funds as of Oct. 18. That itself was up from 55 funds at Aug. 29 and simply 37 at the beginning of 2017.
Belongings underneath administration hit between $three.5 and $5 billion, in accordance with the agency.
The surge in funds comes at a risky time for the cryptocurrencies they commerce in. After hitting a report excessive near $20,000 in December, bitcoin 70 % of its worth to slide under $6,000 in January, posting its worst month-to-month efficiency in three years.
Bitcoin has since recovered a few of these falls, however at slightly below $10,000 continues to be solely value round half what it was a month in the past.
Rival cryptocurrencies have additionally seen sharp declines. The so-called “market cap” of all digital currencies — their worth multiplied by the variety of cash issued — presently stands at round $465 billion, in accordance with commerce web site Coinmarketcap, down from greater than $830 billion in early January.
Towards that backdrop, cryptocurrency hedge funds misplaced a mean of four.6 % in January, in accordance with knowledge from trade tracker Eurekahedge. The funds made a mean of 1,477.85 % in 2017, confirmed Eurekahedge knowledge.