At Least 9 Crypto Hedge Funds Closed in Q1 2018

The first quarter of 2018 was a very eventful one for the crypto industry. As reported by Bloomberg, it was found that in just this quarter, at least nine cryptocurrency hedge funds had to close down.

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Photo by Tim Mossholder

Crowd Crypto Fund and Alpha Protocol were among the nine to shut down. Crowd Crypto Fund has closed down all of its digital platforms along with its social media accounts. Alpha Protocol has not explicitly announced a closure, but instead announced a complete refund for all its investors.

Even being an established crypto hedge fund does not save it from the threat of closure. Investors are just not as interested in crypto hedge funds as they were before. This is attributed to the fact that the returns investors receive from hedge funds have been experiencing declines lately.

Constant declines that can go as low as 23% have discouraged a lot of investors from the crypto investment product. It doesn’t help that the crypto market itself has been experiencing declines as well.

The US Securities and Exchange Commission have shifted their attention from ICOs to hedge funds last month, as previously reported. We are expecting new hedge fund regulations to come out this Q2.

More than 200 cryptocurrency hedge funds have launched over the years. However, the Global Director of FinTech Strategy at the Autonomous Research LLP, Lex Sokolin, has predicted that about 10% of these will be shut down by the beginning of next year.

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