As the bear market drags on for investors, it is easy to get bogged down in price predictions, and famous CEO hot takes on crypto. New hope for crypto enthusiasts has come in the form of hedge funds statistics for 2018.
In a recently released study conducted by Crypto Fund Research, they predict that 20% of all hedge funds started in 2018 will be crypto-focused. These hedge fund projections signal notable digital asset industry growth.
The report also detailed the following hopeful statistics that prove marked progress:
- 120 crypto-related hedge funds are projected to go live this year
- 1.69 percent more crypto funds in 2018 than in 2017
- 90 crypto fund launches in Q3 and a projected 120 for Q4
- 471 percent overall crypto fund increase since 2016
The founder of Crypto Fund Research Joshua Gnaizda notes the exception to the bear market rule his research group has identified:
“In the midst of 2018’s decline in traditional hedge fund launches, crypto hedge funds are a notable aberration. […] While we don’t believe the rate of new launches is sustainable longer-term, there are currently few signs of a significant slowdown.”
While individual investors might be more reluctant to take major risks, as Bitcoin seems to find it’s bottom at around $6,000 some institutional investors view this as a buy-in point. Entering long positions in crypto assets as the bottom hasn’t entirely fallen out yet becomes increasingly appealing.
While crypto hedge funds have clearly picked up steam since 2016 and steadied despite falling prices for the better part of 2018, the overall number invested is $4 billion while the hedge fund industry as a whole holds $3 trillion. Many institutional investors are still wary of market volatility and unregulated waters. The Crypto Fund Research report is a positive sign overall for investors, but relative to non-crypto investments and considering the recent market tank, there is still plenty of risks that beg to be mitigated.