2020-5-15 10:35 |
2019 proved to be the year crypto-space came back from the crypto winter. 2020 is the year of stabilization. This stabilization is in part due to the rise of cryptocurrency hedge funds.
Before now, traditional hedge funds didn’t want to delve into risky markets such as the crypto-space. Now, we have hybrid funds and even purely cryptocurrency hedge funds.
Crypto hedge funds contributed to the thawing of crypto winter last year. They made many significant moves in the market. So much so that the recent annual PricewaterhouseCoopers (PwC) has estimated the value of cryptocurrency assets under management to be about around $2 billion.
The PwC report also indicated a 100% growth in crypto hedge funds. That sounds very much like the kind of growth that could spill over into the rest of the crypto-space.
It could emerge that cryptocurrency hedge funds are going to play an ever-increasing role in driving cryptocurrency prices.
Most of the Millennials are leaving their bank accounts for cryptocurrencies. These millennials are discovering the power of decentralization very swiftly, they are quickly learning that cryptocurrency hedge funds are a great way to hold their cryptocurrency assets.
Institutional investors have shown that Bitcoin and altcoins are new assets that pull a lot of weight. Cryptocurrency hedge funds provide entry for these institutions.
Millennials and institutions have the world’s greatest spending power at the moment. Millennials in the United States alone were expected to spend $1.4 trillion this year alone (according to a recent Lexington Law survey). Though it may not reach that due to certain situations, Millennial spending power is still massive.
The combined power of Millenials and institutional investors in hedge funds provide sufficient gunpowder for cryptocurrency hedge funds.
This is how cryptocurrency hedge funds are going to be the new drivers of growth. With the current increase of knowledge in the cryptocurrency space, it might just happen at any time.
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