Cryptocurrency hedge fund Polychain Capital saw its assets under management shrink from an erstwhile $1 billion high to $591.5 million in Q4 2018.
The news was reported on by the Wall Street Journal on April 11.
The WSJ's sources attributed the steep decline to a drop in the value of the fund's holdings amid a protracted crypto bear market, "Rather than redemptions by investors."
Whereas the hedge fund saw a roughly 40 percent drop in the value of its AUM from April through December 2018, total market capitalization of all cryptocurrencies dropped just over 50 percent over the same time frame, according to CoinMarketCap data.
San Francisco-headquartered Polychain Capital joined the crypto hedge fund space in 2016.
The fund's recent investments include backing stablecoin plans from blockchain payments startup Celo in April, and physically delivered crypto futures exchange Coinflex in March - alongside another high-profile crypto VC firm, Digital Currency Group.
As previously reported, an analysis at the start of this year indicated that in the wake of the 2018 crypto market slump, the launch of new crypto venture funds for the first time exceeded that of new hedge funds in the space.
Crypto Hedge Fund Polychain Capital Saw Assets Under Management Drop 40% In Q4 2018
Published on Apr 11, 2019
by Cointele | Published on Coinage
Coinage
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.