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The total assets under management (AUM) of cryptocurrency hedge funds has doubled to $2 billion in 2019, according to a report by PwC and Elwood Asset Management. The report details that the total AUM of crypto hedge funds moved from $1 billion in 2018 to $2 billion in 2019, as the price of BTC kept on growing.
It adds that the percentage of cryptocurrency hedge funds with AUM of over $20 million increased from 19% to 35% in 2019, with the average AUM increasing to $44 million up from $21.9 million.
PwC and Elwood classified cryptocurrency hedge funds according to several broad strategies, covering funds that tend to have longer lock-in periods for investors, funds that follow hybrid strategies, and funds that trade in more liquid cryptocurrencies, as well as funds employing a combination of these strategies.
Funds trading in more liquid cryptocurrencies, so-called quantitative funds, wre found to be the most prevalent in the market. Most crypto hedge funds traded bitcoin (97%) and ether (67%). Only little over one-third (38%) trade XRP and LTC.
Digital asset investment firm Grayscale, meanwhile reached an all-time high of $3.7 billion in assets under management (AUM). According to a tweet by Grayscale on May 8, the digital currency investment firm has hit an all-time high of $3.7 billion in assets under management. Barry Silbert, founder of Graysacle and CEO of the crypto venture capital firm Digital Currency Group, retweeted the statistic to his 200,000+ followers.
$3.7 billion in AUM. All time high for @GrayscaleInvest https://t.co/QtNhkYpikg
— Barry Silbert (@barrysilbert) May 9, 2020
According to the update, Grayscale’s bitcoin trust is by far the firm’s most popular product. The trust holds $3.31 billion in bitcoin, accounting for roughly 89 percent of the firm’s total AUM. Grayscale’s ethereum trust holds an additional $279 million in ETH, while the ethereum classic trust accounts for the third-highest percentage of AUM at $76 million.
Grayscale, founded in 2013, has become one of the world’s leading institutional investment firms in digital currency.
The firm also published a recent video explaining bitcoin’s block reward reduction, set to occur on May 11, to investors who may be new to cryptocurrency.
If you’re not already familiar with the idea of a #Bitcoin Halving Event — or as some say, “The Halvening” — now might be a good time to watch our video: https://t.co/duAJkedrvs pic.twitter.com/MDrktKMyBH
— Grayscale (@GrayscaleInvest) April 21, 2020
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