Already 9 of the cryptocurrency hedge funds closed in 2018

Already 9 of the cryptocurrency hedge funds closed in 2018

According to Bloomberg, at least nine hedge funds focused on cryptocurrency closed in the first quarter of 2018.

Among closed funds Crypto Crowd Fund and Alpha Protocol. While the Crypto Crowd Fund stopped its activities, including social media presence, Alpha Protocol just announced that it returns to its investors all their money. According to the web site of the Fund, the refund was completed on March 31.

Even hedge funds, which took a strong position, saw a decline in interest from investors. Bloomberg cites the example Multicoin Capital, whose co-founder Kyle Samani, said that “new capital inflows decreased even more high profile funds like ours.”

The profitability of cryptocurrency hedge funds fell an average of 23 percent. The main reason is the serious decline in the cryptocurrency markets.

In fact, only two of the top 25 best cryptocurrency by capitalization, rebounded in the first quarter of 2018. Total market capitalization dropped from $ 830 billion in early January to 251 billion dollars.

Bloomberg noted that over the past few years has added more than 200 hedge funds related to cryptocurrency. Says Lex Sokolin, Director of FINTECH strategy Autonomous Research LLP, about 10 percent of them will close by the beginning of 2019.

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