Cryptocurrency focused hedge funds now number 124

in cryptocurrency •  7 years ago 

As I mentioned earlier in the week, bitcoin/cryptocurrency focused hedge funds have been exploding as of late.

More about that can be read here:

https://steemit.com/cryptocurrency/@jrcornel/crypto-hedge-fund-creation-has-exploded-in-the-last-couple-months-but-it-s-only-the-beginning

However, the numbers from last week are already being dwarfed.

As of last week it was reported that there were 110 cryptocurrency focused hedge funds in existence, today, a mere 5 days later, that number has swollen to 124.

That means 14 new funds were created in less than a week!

Over the last couple months we were averaging about 2 new hedge funds created per week.

According to the latest data (the data provided by financial research firm Autonomous Next), it appears even that 2 per week number is now being dwarfed!

The amount of money being managed by these funds has also risen from $2.2 billion to the current estimate of $2.3 billion.

That doesn't even include the $500 million dollar fund Michael Novogratz is set to launch in January of next year.

Which, by the way, would make it the largest of its kind.

Basically, all the data is just telling us what we already know, the space is booming.

Why is this interesting?

It's not that surprising that there is so much interest in the space, I mean bitcoin and cryptocurrency are in the news and making headlines just about every single day.

However, it is interesting because this is happening at a time when other major Wall Street professionals are being very critical of bitcoin and cryptocurrencies.

From Jamie Dimon, to Warren Buffet, the list seems to get longer by the day of Wall Street tycoons bashing bitcoin.

All the while more and more hedge funds are quietly coming on to the scene and giving their investors what they want.

By the way, the $2.3 billion in cryptocurrency is still minuscule when compared to the $3.2 trillion that makes up the entire hedge fund industry. 

Who is right?

Is it the guys publicly bashing bitcoin and cryptocurrency on a daily basis, or the ones putting their money into these things while everyone else is bashing them?

Tough to say at this point.

Perhaps some of this is even orchestrated...

You mean Wall Street might use a form of deception to pick up one on mom and pop investors?! No, they wouldn't do that... would they?

Stay informed my friends.

Sources:

https://www.cnbc.com/2017/10/27/there-are-now-more-than-120-hedge-funds-focused-solely-on-bitcoin.html

Image Sources:

https://seekingalpha.com/article/4081337-hedge-fund-metamorphosis-2017

https://cointelegraph.com/news/jp-morgan-chase-ceo-jamie-dimon-bitcoin-is-going-to-be-stopped

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For Jamie Dimon to come out so strong against bitcoin, something must be going on behind the scenes. These guys thought cryptos would just be a fad, but its looking increasing likely that is not going to be the case.

Thanks. Great summary.

Informative post, thanks, we will take this very serious

Great info!

hy dear jrcornel we are your new follower today we like you posting and cryptocurrency is best topic on there keep it up make new post.

best off luck

  ·  7 years ago Reveal Comment

Yes, my brother, follow me to see the other funny

Upvoted. I'm going to resteem this now :]

Yes, my brother, follow me to see the other funny

All boats about to be lifted ;-p

Yes, the hedge fund business is going to drive crypto to unbelievable levels. Even when Jamie Dimon was bashing bitcoin he said that it will probably go to $100,000/BTC but he also said that in the end the government will shut it down. He called it a fraud because of it being touted as money. He said it is a technology and not money because money can only be created by governments. Novogratz has similar sentiments. He said it will be the biggest bubble of our lifetime and so he is going to trade it but I think he believes at some point there will be a collapse. He also admitted that BTC is too volatile to be used as money but sees it as the greatest investment opportunity he has ever seen. They both want to participate but Dimon is not being honest about it. He is trying to derail Bitcoin so he can usurp the technology for his own selfish purposes. As the Zero Hedge motto goes, "on a long enough timeline the survival rate for everyone drops to zero," so they are both right.

Wall Street money is one the way. Count on $2T entering this sector over the next couple years.

We will see individual trades of tens of millions of dollars in 2018 I believe. This is the power of Wall Street. Bitcoin will be the biggest winner since it has the most liquidity and name recognition.

The hedge funds, for those who arent aware, are for big money/high net worth people. They do not get a couple thousand dollars from a client but, rather, hundreds of thousands.

Thanks for this timely reminder, taskmaster4450. I would like to add something else that is coming ‘big time’ with hedge funds, and which has me crying in my beer (sort of).

The ‘bots’ are already trading cryptocurrencies, I understand, and with the arrival of the hedge funds in large numbers I’m ready to bet that in the crypto sphere they will reproduce what has happened in the stock market -- dominance of trading by the ‘bots’ (for those who don’t know this jargon, this is trading done by computer programs who replace human traders).

And in recent years, there have emerged super-smart trading bots. This type of bot changes its code on the fly, using principles from neural networks and deep learning. So by the time a bot finishes a long run, you may not have a hope in hell in trying to understand that code (if it has a source-code read-out) because these bots are not taking the time to document code changes.

In the Fall of 2016 I had been trading stocks on and off for 20 odd years, and options very actively in the last 3+ years. I gave up and cashed out all my positions except one I am holding for sentimental reasons; and that is when I got out of my 'trading hole' and waved my white flag of surrender in front of the bots. I was hoping not to see the invasion of the bots so soon in the crypto sphere, and that’s what I’m crying and my beer.

Wall street money will only enter when the market starts becoming more legitimized, right now they will not enter as it is more or less the wild west. Regulation will have to be implemented for the financial institutions to take that risk and enter the market. Right now majority of the ICOs are crap, maybe only 5% could be described as legitimate companies building actual products. Until this changes wall street will stay away as far as possible

Thanks for sharing

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@jrcornel, awesome post and thanks for sharing. i think any of these people who wants to talk down the quality and progressive growth of bitcoin should go ahead for all i know is that bitcoin is rising and no stopping. no politics or government can stop this growth

I really do love to invest on bitcoin, this article is very helpful and educative i have grab some ideas on how to begin

We will continue betting on thecryptos! Follow you @gameofcryptos

Insightful post!

There's a lot of money to be made in Cryptocurrency. I am excited to see where things lead.

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Nice post..

hi @jrcornel! Thanks for this great post, and for sharing your thoughts with us.
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