The „2020 Kryptonian Hedge Fund Report“, published on May 11 by PwC and Elwood Asset Management Services Ltd., said the assets of the Kryptonian Hedge Funds under management doubled in 2019.
According to the survey, total assets under management in cryptomoney funds rose from $1 billion in 2018 to more than $2 billion by the end of 2019. The average per fund also doubled from $21.9 million to $44 million.
The number of women in the crypt industry has increased in the first quarter of 2020
Correlation with the Bitcoin market
The study found that kryptonet fund launches are highly correlated with the price of Bitcoin. When the price of Bitcoin went up in 2018, more funds were launched. While the market slid in late 2019, the launch of new funds showed a „material decline.
The report shows that in the portfolio of crypt funds, 97% include
- a large stake
- the loss of $850 million
- to educate lawmakers
- download our recent report
- revenue to users
- a minimum order size
- times of perceived crisis
- up to 8 percent
- what is ethereum?
- in the developed world
trading, followed by 67% with Ethereum. XRP and Litecoin were in the portfolios of 38% of the funds.
„Kryptos Hedge Fund Report 2020“
Nearly 90% of crypto-currency hedge fund investors surveyed are family offices or high net worth individuals, with few strategies to attract foundations, venture capital funds or pension funds, according to the survey.
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Return of funds
The study identified four main strategies of cryptomoney hedge funds. The most common is quantitative, or funds that take a market approach either in a directional or neutral manner. Crypt funds dominate the space, with 48% of the funds having this strategy.
However, the report came with a caveat: the results were provided by the fund managers themselves and were not verified by an independent fund manager or other third party. There could also be a significant survival bias, the report explained:
„The average performance of cryptomoney hedge funds was -46% in 2018. However, the average return of the funds included in this year’s report at the end of 2019 is 74%. This provides very clear evidence that funds that underperformed significantly over the previous year had to close down.