There are currently at least 120 hedge funds concentrating on using Bitcoin as an investment. Hedge funds itself is the management of private funds by using investment from various customers of various layers. Management is usually left to the manager, including how to manage and how to invest. Funds collected can not be withdrawn at any time, but follow the applicable agreement. No longer rely on conventional currency, currently hedge funds have also penetrated Bitcoin and did not rule out also in other digital currencies.
This year there are 90 funding focused on digital assets such as Bitcoin. According to research firm Autonomous Next, that number has now increased to 124.
According to data distributed exclusively to CNBC Friday shows that the bulk of the fund, 37 percent, uses a venture capitalist type strategy and has about 1.1 billion dollars of managed assets. Funds focused on digital asset trading are second in 32 percent, with about $ 700 million in managed assets.
According to the data, funds that specifically use machine learning, data science or statistical arbitrage in digital currencies are in the third position of 10 percent and $ 100 million for managed assets.
The total assets managed by crypto funds now amount to $ 2.3 billion, according to Autonomous Next estimates.
Bitcoin price spikes and other digital currencies, Ethereum, have drawn attention to crypto and their potential Blockchain technology. Proponents say Blockchain can change the world just like the internet, and some big banks are researching or developing Blockchain projects.
Digital currency users also linked Bitcoin’s recent surge with record highs above $ 6,100 to increase institutional investor interest. While some of Wall Street’s top banking executives are still skeptical of Bitcoin, the more experienced money managers have opted to switch to digital asset management.
In addition to investing in digital currencies such as Bitcoin and Ethereum, users are betting on buying new digital coins for projects built with the same Blockchain technology. Tokens are launched through a process called initial coin offerings and have generated more than $ 3 billion, according to Autonomous Next.
The total amount of crypto funds and managed assets is still small compared to the record $ 3.15 trillion held by the hedge fund industry in the third quarter, according to the HFR. However, rising prices and popularity of Bitcoin are expected to be key to increasing hedge funds for all digital currencies.