Hedge funds containing bitcoin as a primary asset were more profitable in 2019 than those that didn’t feature the cryptocurrency, according to the latest survey by Eurekahedge.
The hedge fund database found that dedicated cryptocurrency funds returned more than 16 percent profits to its investors last year. In comparison, traditional hedging strategies generated a dwarfed 10.4 percent return.
The difference, albeit minor, helped push bitcoin in the eyes of more traditional investors, with Deutsche Bank stating in its January 2020 report that the cryptocurrency appears more attractive than traditional assets. The German financial giant added that more and more people would adopt bitcoin because of its technological advantages.
Speed, for instance, is one feature that has attached itself to the bitcoin trading from the very beginning. Hedge funds involved in the crypto space sell and purchase bitcoin more quickly than they do with traditional assets. It gives them more opportunities to realize gains out of the cryptocurrency’s pricing inefficiencies.
Institutions Returning to Bitcoin
2019 was the year of bitcoin’s rebirth. The cryptocurrency grew into investors’ risk-averse conscience after surging by more than 200 percent in the first two fiscal quarters. The gains came on the backs of macro narratives such as the US-China trade war, yuan devaluation, as well as Facebook’s foray into the crypto space with Libra.
In 2018, the same bitcoin had plunged by more than 85 percent from its circa $20,000 top. The crash took place after investors lost the money they had put in startups that featured bitcoin’s core technology, the blockchain. Most of those young companies turned out to be either scams or vaporware.
Nevertheless, the latest hedge fund returns show that confidence is returning to the bitcoin market.
Steve Kurz, the head of asset management at crypto fund Galaxy Digital, told FT that investors are “piling” into bitcoin because the cryptocurrency’s returns over the one, three and 10-year timeframes have been impressive.
Max Boonen, the founder of crypto trading company B2C2, further believed that bitcoin could join the league of bigger traditional assets like equities and bonds. Meanwhile, Chris Zuehlke, the global head of Cumberland – a dedicated crypto fund set up by Chicago-based DRW, said traditional banks will play brokers to settle bitcoin trades in the near future.
The Setbacks
Despite bitcoin’s growth, big investors are still put off by the cryptocurrency’s status as an asset that remains widely-unregulated and prone-to-manipulation.
Bitcoin’s recent sharp rally likely had nothing to do with China, or any fundamental factor. It clearly looks like market manipulation by whales looking to sucker in momentum buyers. By pumping up a technically weak market, they are able to dump more #Bitcoin at higher prices.
— Peter Schiff (@PeterSchiff) October 28, 2019
Allegation of a stablecoin Tether single-handedly pumping-and-dumping the market, as well as 95 percent of bitcoin’s volume being fake, are among the concerns that have kept institutions away from the crypto space. Skeptics believe the fears are likely to remain unless such core issues get resolved. The post appeared first on NewsBTC. origin »
Around 120 hedge funds engaged in crypto reported hurdles in accessing banking services over the three years, The Wall Street Journal reported on Dec. 20. The number represents roughly 75% of 160 hedge funds recently surveyed by the Alternative Investment Management Association (AIMA).
Nearly half of hedge funds focused on traditional assets now have crypto exposure, driven by regulatory clarity and the launch of ETFs, according to a new survey. A growing number of hedge funds focused on traditional asset classes are embracing…
The percentage of funds with crypto exposure fell to 29% from 37% in the past year, though no traditional hedge funds plan to decrease their exposure in 2023.
Several significant crypto hedge funds and traditional hedge funds with crypto exposure were severely tested during the 2022 bear market.
The post Top Crypto Hedge Funds Tested by 2022 Bear Market Bite appeared first on BeInCrypto.
There is a small group of hedge funds benefiting from the recent turmoil in the cryptocurrency markets.
The post Few Hedge Funds Prove to Be Profiting From Market Downturn appeared first on BeInCrypto.
Are hedge funds ready to go all-in on cryptocurrencies? Probably not, but some of them are definitely dipping their toes in. The thing is, those toes are enormous. In the article “Mainstream Hedge Funds Pour Billions of Dollars Into Crypto,” the Wall Street Journal does a deep dive into the phenomenon.
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After the 2017-18 boom-bust that took the market to new highs and dropped it 80-90 percent from there, the current scenario of over 70 crypto-focused hedge funds closing is not very surprising. The number of hedge funds focused on the space has reduced in 2019 relative to the past two years, and CME volumes areRead MoreRead More.
Hedge funds are one of the most popular choices for risk-averse investors and rely on the fund’s visionary founder and teams of analysts to guide their money in the right direction. Bitcoin remains a small percentage of the hedge fund industry, but even the oldest and most established funds can see what’s coming. PWC estimates […]
In a recent tweet thread, Anthony “Pomp” Pompliano, co-founder of Multicoin Capital, outlines why many of crypto hedge funds might be closing their doors in 2018. Most people would expect that the bear market and the prices would be the number one reason why most hedge funds are closing up shop.
In a recent tweet thread, Anthony “Pomp” Pompliano, co-founder of Multicoin Capital, outlines why many of crypto hedge funds might be closing their doors in 2018. Most people would expect that the bear market and the prices would be the number one reason why most hedge funds are closing up shop.
The first three quarters of this year saw the launch of 90 cryptocurrency hedge funds, according to Crypto Fund Research. This number is surprising, as the crypto market has been quite bearish most of this year.
Hedge funds get a lot of stick in the press, but the best ones are very good at spotting overvalued shares. Once they’ve found these overvalued shares, hedge funds will short them – in other words, they’ll bet that the share price will fall. In this video, I’m going to look at some of the […]
The recent twists and turns of the cryptocurrency industry have put a major damper on the profits that multiple hedge funds planned for in this time of the year. However, it seems that the creators of new crypto platforms have not been discouraged at all. In fact, the amount of crypto funds and their asset […]
Despite supporting thousands of cryptocurrencies on its open-source platform, institutional investors are seemingly bearish on the broader use case of Ethereum, the world ’s second-largest digital currency by market cap.
Despite supporting thousands of cryptocurrencies on its open-source platform, institutional investors are seemingly bearish on the broader use case of Ethereum, the world ’s second-largest digital currency by market cap.
Major Investors Short Ethereum Following the massive price crash and market correction of Bitcoin last month, Ethereum experienced a similarly bleak outlook. The currency is the second-largest crypto on the market, both in terms of overall participation and trade volume.
The company reportedly landed a $ 20 billion prime client and got its ads reinstated on Facebook. And additional massive hedge funds are being worked on by the Coinbase Prime team to possibly join the trading venue too.
Tokenization on the blockchain can make all asset groups easier to liquidate by creating a tradeable standard in security tokens. Longer term, return-seeking strategies typically tend towards investment in real estate, private equity, hedge funds, and companies.
Coinbase has launched a new prime brokerage service for hedge funds with the crypto-unicorn attracting an unnamed $20 billion hedge fund according to Business Insider which says: “The firm has onboarded.
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Sequoia China Leads Another Startup Funding With Nervos' $28 Million Round According to an official statement Blockchain-based startup, Nervos Network has announced the successful completion of its Series A funding round with $28 million said to be the official figures raised by the investors.
Several cryptocurrency-focused hedge funds and virtual capitalists have invested $28 million on a Chinese startup that builds a next-generation network for enterprises.
Blockchain company Block. one has announced that it has received funds from Peter Thiel, billionaire investor and entrepreneur, as well as several other distinguished luminaries from the investment field.
X-Capital Pledges 2,000 ETH Contribution in DREAM ICO X-Capital, a diversified cryptocurrency hedge and investment fund based in Palo Alto, recently declared that it will donate 2000 ETH during the ICO for DREAM, a blockchain talent ecosystem.
Billionaire Steven Cohen has backed a hedge fund targeted at crypto assets and blockchain-based companies by investing in it. This supports claims made by an employee at Morgan Stanley that cryptocurrency trading will be a ‘shot of adrenaline’ for hedge funds.
Billionaire Steven Cohen has backed a hedge fund targeted at crypto assets and blockchain-based companies by investing in it. This supports claims made by an employee at Morgan Stanley that cryptocurrency trading will be a ‘shot of adrenaline’ for hedge funds.
In a bid to offer state-of-the-art, robust, and high-performance connectivity for its institutional clients, on July 11, 2018, Bitfinex announced a strategic alliance with Market Synergy, a highly reputable Swiss-based company whose primary objective is providing security and standard fail-proof connectivity for digital asset firms, banks, brokers and hedge funds alike.
Market Synergy GmbH, a Swiss-based organisation which offers institutional standard cryptocurrency connectivity and security for banks, brokers and hedge funds has been selected by Bitfinex, the world’s leading cryptocurrency trading platform, to provide robust, high performance connectivity for institutional clients.
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Major cryptocurrency exchange Bitfinex have announced a new partnership that promises to bring a new wave of institutional investment into cryptocurrency through the Bitfinex platform. According to Finance Magnates, Bitfinex have announced a partnership with Markey Synergy GmbH.
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Milken chief investment officer panel on managing hedge funds. Hedge funds have had their best start to a year since the financial crisis, when investors pulled out $112 billion. During this change in the tides, what are the latest strategies hedge funds can add to their toolkits? What are specific examples of how new technologies, […]
Coinbase Custody Opens The big story on Tuesday was that the new institutional offering Coinbase Custody officially opened for business. The service will be onboarding crypto hedge funds, exchanges and ICO projects over the coming weeks.
CRYPTTO is developing a Quantitative HighFrequency Trading Platform that will provide access to a suite of products that were previously available only to HFT hedge funds and prop trading firms. Our suite of products will include fully-automated market-neutral trading strategies, intelligent execution algorithms, and trading signals with manual or semi-automated execution.
Coinbase, a well-renowned and trusted exchange has recently added 10 clients who are now using its newly released custodial service. The customer base that includes home offices and hedge funds can now keep their digital assets in safety, as they would keep their traditional assets.
It would appear Coinbase’s custody service is already attracting a lot of positive attention. More specifically, the new custodial service piqued the interest of at least 10 hedge funds and family offices.
Coinbase, one of the world’s leading exchanges, has announced that they will be launching an institutional custody solution today, known as Coinbase Custody. They also said that they will be onboarding a “set of world-class clients that includes leading crypto hedge funds, exchanges and ICO teams.
As part of Coinbase’s initiative to facilitate institutional investment in the cryptocurrency market, the exchange’s Custody service is now live in the US and Europe. Bringing in Big Money Coinbase Custody is a service which provides secure storage for crypto-assets for eligible financial institutions and hedge funds across the world.
The new Coinbase Custody service will implement a range of security measures for safe and secure storage of digital assets. On Monday, July 2, Coinbase announced through its official blog post that it has made its ‘Coinbase Custody’ service open for all institutional players and businesses. The service is aimed at institutional hedge funds and
Declining cryptocurrency prices make a lot of people uneasy, for obvious reasons. This is especially troublesome where the many cryptocurrency hedge funds are concerned. Even so, there is room for optimism.
As of today, Coinbase Custody, a week after accepting its first deposit, has announced that they are officially open for business. The company’s aim customer base is established financial institutions, hedge funds, etc and is now live.
On July 2, 2018, Coinbase officially launched Coinbase Custody. After accepting its first trial deposit last week, the newly introduced custodial service is up and running.
Discover why ZKP is standing out as a top presale crypto, with privacy + verification technology that supports secure, verifiable AI compute as its presale auction goes live.
A staged fake-delivery encounter in San Francisco’s Mission Dolores district escalated into one of the city’s largest known individual crypto thefts, after a disguised assailant subdued a resident and escaped with assets worth $11 million, alongside the victim’s phone and laptop.
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Hyperliquid displays a Head and Shoulder pattern of HYPE token, which indicates a significant price change. The $35.5 neckline is crucial with a target of $12.
In a recent financial statement on Circle’s (CRCL) third-quarter (Q3) performance, the stablecoin giant saw tremendous increase in key metrics, exceeding Wall Street estimates. Circle’s Financial Disclosures According to the financial disclosures made public by the firm on Wednesday, Circle’s Reserve Income surged to $711 million, marking a substantial 60% year-over-year increase, primarily fueled by […]
According to a recent report by Bloomberg, the cybersecurity arm of China has openly accused the US government of orchestrating the theft of approximately $13 billion in Bitcoin (BTC), adding tension to the ongoing cyber relations between the two nations.
