The number of hedge funds focused on digital currencies has risen sharply in 2017, according to research data from a company called Autonomous Next. That data was reportedly provided to CNBC yesterday, and reveals that more than 90 of these cryptocurrency hedge funds were launched in the first ten months of the year. The research found that there are now 124 hedge funds focused on digital currency, managing assets worth roughly $2.3 billion.
The CNBC report provided more details about the funds:
“[T]he largest share of the funds, 37 percent, used venture capitalist-type strategies and had about $1.1 billion in assets under management. Funds focused on trading digital assets came second at 32 percent, with about $700 million in assets under management.
Funds specifically using machine learning, data science or statistical arbitrage on digital currencies came in third at 10 percent and $100 million in assets under management, the data showed.”
That reported $2.3 billion in assets could increase dramatically if the Galaxy Digital Assets Fund launches as expected. Bloomberg reported in late September that macro manager Mike Novogratz plans to raise at least $500 million for the fund, including $150 million of his own wealth.