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There are now 226 Cryptocurrency Hedge Funds in Operation Around the World



There is a bright future ahead in the world of cryptocurrency hedge funds. More and more of these ventures are launched every single fiscal quarter. As of right now, there are no less than 226 cryptocurrency hedge funds in existence. A rather spectacular number, although it will continue to increase for some time to come.

The global interest in cryptocurrencies has never been greater. Bitcoin’s price increase is the main catalyst fueling this interest. Hedge fund managers are also paying close attention to these developments. A fair few of them even create separate cryptocurrency hedge funds to get on board with this new form of money. New research by Autonomous Next shows there 226 of such operations active around the world. A solid number, but there’s always room for more.

The Rise of Cryptocurrency Hedge Funds

A lot of hedge funds now focus their attention on trading cryptocurrencies. While a volatile market, there is a lot of money to be made. This has led to the number of cryptocurrency hedge funds doubling in just four months. While the current record is still 226, that situation will look very different in a few months from now. Especially with most markets recovering lost value, the demand for exposure will only grow bigger.

Autonomous Next’s Lex Sokolin comments as follows:

“While the softer prices of crypto assets do create a more difficult environment for investors, I do not think it will pause the influx of funds and other financial institutions building products in the space…It would take the extreme case of the entire space contracting by 80 percent and high regulation before the flow of funds turns around.”

It is also important to note these cryptocurrency hedge funds net a healthy profit. Just last year, the average fund gained over 1,300% over a course of twelve months. This is offset by a smaller 4.6% loss during January of 2018. During that time, most markets lost a fair amount of volume during the yearly January Dip. It is evident things will turn around once again in the near future. Moreover, more clients also generate more passive revenue for these cryptocurrency hedge funds. Fees can be as high as 19% for management and performance for funds tracking.

Header image courtesy of Shutterstock





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In Bear Market, Korea’s Biggest Crypto Project ICON Showed Solid Progress

A goodbye note from Deblock’s now-former Head of Research revealed the progress of their ICON blockchain project in all these months. And they looked extremely positive. As he left the company to pursue his startup, Markus Jun noted ICON as one of the very few blockchain projects that showed significant accomplishments despite staying inside a bleeding crypto market. “My time at Deblock and ICON coincided with one of the worst downturns in the cryptocurrency market. In spite of this, I can say that the ICON team has made incredible progress,” Markus wrote while asserting that their interoperable blockchain project till this date leads the South Korean blockchain industry. “I’ve seen ICON push for significant progress in legitimizing blockchain and cryptocurrencies with the Korean Government, receiving the Minister Award for being an industry leader in the blockchain space, and launching demonstrations and several projects in conjunction with the Seoul Metropolitan Government. I’ve seen several hires in every ICON department, including senior positions, most of which weren’t made public and the team is still actively hiring to this day.” Markus also brought focus to ICON’s international expansion stories, which included the launch of their global accelerator program ICONLOOP in partnership with the Singapore government, followed by its continuation in Tokyo and San Francisco. “Beyond this, there are ongoing efforts to expand ICX Station globally. All things considered, it’s clear that ICON isn’t letting the market downturn affect them in moving forward,” Markus explained. The said expansion is also bringing valuable partners to ICONLOOP. In addition to the Seoul government, ICON has gained support from LINE, Smilegate, Kyobo Insurance, and Jeju Island to develop blockchain solutions for them. It overall makes a long-term use-case for ICON’s ICX public network, indicating a stable growth for its native token ICX as well. Solvent after Crash At the time of the ICO, ICON’x ICX token sale raised close to 75,000 ETH. Their smart contract split the funds into 30 separate Ethereum wallets. Between December 2016 and November 2018, ICO team moved circa 70% of their funds to other portfolios – perhaps as part of a sale. After the post-ETH crash adjusments, the team holds around $5 million in ETH reserves. The figures prove that ICON is far from being insolvent at this time, in contrast to several other ICO projects that have either gone out of business or in a money crisis. Forrester Research’s chief analyst Martha Bennett predicts that a majority of these ICOs are heading towards an outright extinction in absence of users and funds. “Sooner or later, this would have led to a contraction anyway. The crypto crash acted as both catalyst and wake-up call.” Big crypto startups like Coinbase and ConsenSys have also laid off employees in the past two months, indicating that the crypto market, in general, is running out of money. ICON, with a provable business model and an increasing use-case among well-known organizations, could still survive the bloodbath owing to an actual demand for service. “I’ve seen the best of ICON in the worst of times. That’s why I’m confident ICON is here to stay,” Markus noted. The post In Bear Market, Korea’s Biggest Crypto Project ICON Showed Solid Progress appeared first on NewsBTC.

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