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Hedge Funds are Cashing in on Bitcoin Mania

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In 2017 the hype around cryptocurrencies have reached unprecedented levels. Not ones to miss out on the action, dozens of hedge funds have been created solely to invest in the variety of crypocurrencies that are entering the market.

Cryptocurrencies, such as bitcoin and Ethereum, are powered by distributed ledger (or blockchain) technology, which allows for decentralization of control of assets. In the past 2 years, the market for such currencies has expanded at a phenomenal rate, with over 800 coins currently available to invest in, with a combined marketcap of over $160 billion.

According to fintech analysis firm Autonomous NEXT, there are over 50 cryptocurrency hedge funds currently available to invest in. These include funds such as Ether Capital and Medici Crypto, whose names alone indicate their intended market.

Unsurprisingly, the huge rises that popular cryptocurrences such as Bitcoin and Ethereum have attracted the attention of Wall Street. Since 2016, both Bitcoin and Ethereum have risen hundreds of percent in value. With no ceiling in sight, it seems clear that traders won’t want to miss their opportunity. In addition, there are an increasing number of initial coin offerings (ICO’s), a fundraising offering similar to an IPO, where developers sell coins (or tokens) relating to their product, as opposed to shares. Since the beginning of 2017, over $2 billion has been raised via ICO’s.

Based on the returns that they are showing, it is no surprise that cryptocurrencies have attracted the attention of hedge funds. According to Steve Nadel, a hedge fund attorney at Seward & Kissell, he is witnessing fund managers investing in the currencies themselves and in ICO’s, with derivatives likely to be the next step.

Set out below is the full list of crypto funds, in alphabetical order:

(1) 1confirmation

(2) Alpha Bit

(3) Alphabet Coin Fund

(4) Auryn Capital

(5) BKCM Digital Asset Fund

(6) Blackmoon Crypto

(7) Bletchley Park Asset Management

(8) Block View Capital

(9) Blockchain Capital

(10) BlockStack

(11) BlockTower Capital

(12) Blueyard

(13) CoinFund LLC

(14) Coinshares 1 LP / Global Advisors

(15) Crypto Asset Fund

(16) Crypto Assets Fund

(17) Crypto Fund AG

(18) Crypto Lotus

(19) Cryptochain Capital

(20) Cryptocurrency Fund LLP

(21) Cryptor Trust

(22) Cyber Capital

(23) Digital Developers Fund

(24) Ether Capital

(25) Exagon Fund

(26) FBG Capital

(27) Fenbushi

(28) Firstchain Capital

(29) General Crypto

(30) Grasshopper Capital

(31) Hyperchain Capital


(33) Iterative Instinct

(34) Kenetic Capital

(35) Logos Fund

(36) Medici Crypto

(37) Metastable

(38) Monkey Capital

(39) Multicoin Capital

(40) Pantera

(41) Placeholder Capital

(42) Pollinate Capital

(43) Polychain

(44) Rich Fund

(45) Satoshi Fund

(46) Science Inc.

(47) Solidus Capital

(48) Soros Fund Management

(49) SuperBloom

(50) TAAS Fund

(51) Tezos

(52) The Token Fund

(53) Token Factory

(54) Unit Fund

(55) Venture One