70 Crypto Hedge Funds Have Closed in 2019
According to Crypto Fund Research, at least 68 hedge funds specializing in cryptocurrencies have ceased their activities in 11 months of this year..
They mainly served institutional investors such as family offices, pension funds, and wealthy people, according to the researchers. 28 such organizations closed in the USA, in Europe – 23, in Asia and the Pacific for a total of 14, and 3 more funds in other areas.
At the same time, the number of cryptocurrency hedge funds launched this year has halved compared to 2018..
Analysts point out that the contraction came amid an unstable year for cryptocurrencies, when high volatility made them «uncomfortable» for institutional investors. The market is still focused on retail.
Currently, Crypto Fund Research researchers have counted a total of 804 crypto funds, of which 355 – hedge funds, and 425 – venture.
text: Ivan Malichenko, photo: Getty Images