The bubble of cryptocurrency hedge funds starts to be blown away

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In 2017 against the backdrop of an impressive increase in the price of bitcoin to historical highs, were launched more than 150 hedge funds, thanks to the many institutional and private investors that paid attention to cryptocurrencies. However, since December the bitcoin rate has more than halved, forcing investors to start thinking twice before placing their funds in similar enterprises.

“The Inflow Of New Capital Has Slowed Down, Even In An Authoritative Fund Like Ours,” Kyle Samani, Co-Founder Of Multicoin Capital, Austin, Texas.

This fund was launched in August last year and under management has about $50 million.

At the same time, such a noticeable decrease in the price of bitcoin and other cryptocurrencies resulted in at least nine funds, including Crowd Crypto Fund and Alpha Protocol, stopping their work, removing websites and social networks accounts.

“Taking Into Account Potential Regulatory And Market Risks, We Decided That The Best Approach Would Be To Return Funds To Private Investors,” AlphaProtocol Management Said Some Time Ago.

Number of launched cryptocurrency funds by years.

As noted by the publication, Polychain Capital, probably the largest cryptocurrency hedge fund with about $250 million under management, in January, decided to refuse to enter the market in Canada. Even earlier, in December, billionaire Michael Novogratz refused the plans to launch a crypto fund, directing efforts to create a trading cryptocurrency bank and investments in related technologies.![3E0097D9272275A1E834F32B8E42B204.jpg]