Biggest Crypto Hedge Funds and What They Tell About the Market

Published on by Cointele | Published on

It provides a fairly robust account of the five firms that are most likely the biggest funds operating in crypto today, in terms of digital assets under management and investments in crypto-related startups.

These include Coinbase, Kik, Celo and dYdX, which Polychain has been able to invest in thanks largely to the raising of around $175 million for its venture capital fund at the end of 2018.One thing that's worth noting about Polychain Capital is that it has received significant backing for its venture capital and crypto funds from major VC firms.

Galaxy DigitalLaunched in New York City in 2018 by former Goldman Sachs partner Michael Novogratz, Galaxy Digital is another hundred-million-dollar crypto hedge fund.

During 2018, the fund posted a net loss on its balance sheet of $272.7 million, largely because of the bear market and crumbling crypto prices.

Even forgetting a16z, Andreesseen Horowitz is therefore heavily invested in the cryptocurrency industry and is one of the biggest funds operating in the space today.

The restOf course, these aren't the only big investment funds operating in crypto to the tune of hundreds of millions of dollars.

BlockTower Capital, which launched in 2017 and has around $130 million in AUM.Boost VC, a California-based fund that launched in 2014, which has $95 million in AUM.Fenbushi Capital, a China-based crypto fund that had $50 million in assets under management in early 2018.These aren't the only significant funds working in the crypto industry.

The survey found that more than 60% of 150 active crypto hedge funds have less than $10 million in AUM, with only 10% of these funds managing more than $150 million.

Over 90% of crypto hedge funds don't use third-party research, suggesting that they suffer from a deficit of external, objective input.

Still, while this might indicate that the crypto hedge fund sector is immature and vulnerable, there was a pronounced increase in crypto hedge funds and the assets under their management in 2018, according to Morgan Stanley research.

x