Crypto Funds Are Growing Faster Than Other Hedge Fund Market Segments, #WhenMoon Bitcoin?
What will traditional and dominant financial institutions do with the growing influence of virtual currencies?
Crypto Hedge Funds Perform Better Than Others
Although the bear market of 2018 affected negatively the whole cryptocurrency industry, 2019 seems to be different. In the past, several companies in the traditional financial world were embracing distributed ledger technology (DLT) and getting closer to the cryptocurrency market.
However, things changed after digital assets plummetted to their lowest point in more than a year.
As Bitcoin and other virtual currencies are currently starting to grow once again, banks and financial firms could be left behind. The Street wrote about this situation:
“Yet giant U.S. banks like JP Morgan Chase, Goldman Sachs Group and Bank of New York Mellon that dominate Wall Street trading in everything from bonds, stocks, commodities, and foreign exchanges are increasingly at risk of missing out due to their own reluctance to jump into the cryptocurrency market.”
At the moment, regulatory issues seem to be one of the main issues why traditional financial institutions do not place their funds in the cryptocurrency market. However, retail investors continue to place their funds into the cryptocurrency market.
According to Crypto Fund Research, there are more than 700 crypto and blockchain investment funds. These funds are set up as a hedge venture capital funds, while others are hybrid funds.
One of the countries with the largest number of hedge funds is the United States, followed by Asia and Europe. At the same time, the assets under management by these hedge funds continue growing, reaching $14.35 billion on April 1, 2019.
It is worth mentioning that Samsung has released its Galaxy S10 smartphone with a hardware wallet for digital assets integrated on the phone. Additionally, the South Korean giant could be working on its blockchain network and it could eventually launch a digital asset.