Crypto Hedge Funds Saw An Average Of 46% In Losses During 2018, Yet Institutions Still Atop Priority List
Crypto Hedge Funds Experienced A Median Of 46% Loss In 2018
Cryptocurrency hedge funds have experienced a median loss of 46% on average in 2018 according to a recent report released by The Block. However, the price of the most popular digital asset fell over 72% during the same period of time.
Hedge Funds Register 46% Losses
Last year was not good for digital assets and virtual currencies. Bitcoin fell from its all-time high of $20,000 to $3,150 from December 2017 to December 2018. Other digital assets have also experienced very large losses during the same period of time.
According to a report released by PwC and digital asset manager, Elwood found that just 10 funds out of 150 were able to manage more than $10 million in assets for their clients. At the same time, this report explained that there were regulators that want to regulate the cryptocurrency space. In general, crypto funds operate without a consistent administration, board of director oversight and other processes present in other more established sectors.
With increasing oversight from financial institutions and better industry-standard governance, it will be possible for institutions to enter the market in a more active way. Institutions do want to enter the crypto space and there are several companies that want to invest in virtual currencies.
Finally, hedge funds have also been trying to adopt venture capital-like structures in order to improve returns.