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Hedge Fund Managers Pounce on Bitcoin Volatility

Sophisticated hedge fund traders are drawn to speculation, as evidenced by a more than a twofold increase in the number of crypto-driven hedge funds in recent months. Fintech analysis firm Autonomous NEXT told CCN hedge funds are currently overseeing between $3.5 billion and $5 billion in assets under management (AUM) across 226 crypto funds, in the four-month period leading up to today. Indeed, while much of institutional capital remains sidelined from the cryptocurrency market, the tide is beginning to shift. For instance, the most recent Autonomous data compares to 110 crypto hedge funds as of Oct. 18 and about three dozen at the start of 2017. Meanwhile, crypto funds have risen alongside the BTC price over the same period, over which time the bitcoin price advanced 70%. But there have been peaks and valleys, including 2017’s record 1,300% run, December’s near $20,000 high and a rocky January in which the BTC price shed about 30%. Hedge fund strategies thrive on this type of activity as they aren’t limited only to betting on the rise in the BTC price.

Reference: https://www.ccn.com/hedge-fund-managers-pounce-on-bitcoin-volatility/