Reports are demonstrating that digital currency hedge have encountered a noteworthy reduction in demand for exposure – with numerous funds posting losses for 2018 up until this point, and others shutting their doors totally.
Among those to stop operations, are Crowd Crypto Fund and Alpha Protocol – with Alpha Protocol as of late distributing a message informing investors, expressing, “Considering the potential regulatory and market risks, Alpha Protocol has decided that the best approach is to refund the private sale contributors.”
Notwithstanding the closures, a few industry players have reneged on past plans – with Sequoia and Andreessen Horowitz-backed Polychain Capital rule against conducting a Canadian initial offering in January. Mike Novogratz likewise selecting against launching a digital currency fund in December, rather taking a shot at a merchant bank concentrated on crypto-related ventures.
Crypto Funds Produce Losses Over 20% in 2018 in Across January and February
As per Eurekahedge’s “Crypto-Currency Hedge Fund Index,” the average execution of crypto hedge funds in 2018 has been lost 23.31% as of March, with February alone delivering an average loss of 18.75%.
Kyle Samani, the co-founder of Texas-based hedge fund Multicoin Capital, as of late revealed to Bloomberg that “New capital has slowed, even for a higher-profile fund like ours.” Multicoin’s fund launched in August 2017, and as of now oversees roughly $50 million in assets.