Discretionary long-only funds performed the best, while quantitative funds saw a median 30% increase and a 58% gain.
As crypto prices rose throughout 2019, cryptocurrency-based hedge funds’ AUM (assets under management) surged. However, according to a new survey report from PwC and Elwood Asset Management Services Ltd., there were some significant differences in performance throughout the year depending on the specific type of fund.
Citing data from the report, Bloombergexplained that by the end of 2019, there were $2 billion in crypto funds’ AUM by the end of 2019, up from $1 billion at the end of 2018; over the same time period, the average AUM per fund increased from $21.9 million to $44 million.
Throughout the year, discretionary long-only funds did the best, with a median performance of 40 percent and an average 42% gain. Discretionary long/short funds had both an average and median advance of 33 percent, while multi-strategy funds increased a median 15 percent.
At the same time, quantitative funds saw a median 30 percent increase and a 58 percent gain. According to Bloomberg, the 28-percentage-point difference between the increase and the median implies “that there were some outsized outperformers.”
Henri Arslanian, PwC global crypto leader and partner, commented to Bloomberg that “the Volatility of crypto markets offers many opportunities for quant traders,” and that “the performance of crypto quant funds tends to be more linked with market volatility rather than market performance.”
(However, it’s important to note that the survey results were provided by the fund managers themselves, and weren’t verified by a third party.)
Another notable finding in PwC and Elwood’s report was the prevalence of Bitcoin in these cryptocurrency-based hedge funds. 97 percent of survey respondents said that BTC was included in the fund/s they manage, while Ethereum was including in 67 percent; Litecoin was present in 38 percent, while Bitcoin Cash and EOS rang in at 31 percent and 25 percent, respectively.
The report found the prevalence of Litecoin in these funds “interesting”: “Litecoin was mentioned by funds as one of their top-traded altcoins despite its market cap being relatively smaller than the other mentioned altcoins,” the report said.
Additionally, the report found that nearly half (48 percent) of the investors in hedge funds were family offices, while high-net-worth individuals comprised 42 percent of the investors. The remaining percentage is attributed to foundations or endowments, venture-capital funds or funds-of-funds; none of the respondents cited pension funds.
But this could change overtime: Arslanian told Bloomberg that “I expect the crypto hedge fund industry to grow significantly over the coming years as investing in a crypto fund may be the easiest and most familiar entry point for many institutional investors looking at entering this space.”
As crypto prices rose throughout 2019, cryptocurrency-based hedge funds’ AUM (assets under management) surged. However, according to a new survey report from PwC and Elwood Asset Management Services Ltd., there were some significant differences in performance throughout the year depending on the specific type of fund.
Citing data from the report, Bloombergexplained that by the end of 2019, there were $2 billion in crypto funds’ AUM by the end of 2019, up from $1 billion at the end of 2018; over the same time period, the average AUM per fund increased from $21.9 million to $44 million.
Throughout the year, discretionary long-only funds did the best, with a median performance of 40 percent and an average 42% gain. Discretionary long/short funds had both an average and median advance of 33 percent, while multi-strategy funds increased a median 15 percent.
At the same time, quantitative funds saw a median 30 percent increase and a 58 percent gain. According to Bloomberg, the 28-percentage-point difference between the increase and the median implies “that there were some outsized outperformers.”
Henri Arslanian, PwC global crypto leader and partner, commented to Bloomberg that “the Volatility of crypto markets offers many opportunities for quant traders,” and that “the performance of crypto quant funds tends to be more linked with market volatility rather than market performance.”
(However, it’s important to note that the survey results were provided by the fund managers themselves, and weren’t verified by a third party.)
Another notable finding in PwC and Elwood’s report was the prevalence of Bitcoin in these cryptocurrency-based hedge funds. 97 percent of survey respondents said that BTC was included in the fund/s they manage, while Ethereum was including in 67 percent; Litecoin was present in 38 percent, while Bitcoin Cash and EOS rang in at 31 percent and 25 percent, respectively.
The report found the prevalence of Litecoin in these funds “interesting”: “Litecoin was mentioned by funds as one of their top-traded altcoins despite its market cap being relatively smaller than the other mentioned altcoins,” the report said.
Additionally, the report found that nearly half (48 percent) of the investors in hedge funds were family offices, while high-net-worth individuals comprised 42 percent of the investors. The remaining percentage is attributed to foundations or endowments, venture-capital funds or funds-of-funds; none of the respondents cited pension funds.
But this could change overtime: Arslanian told Bloomberg that “I expect the crypto hedge fund industry to grow significantly over the coming years as investing in a crypto fund may be the easiest and most familiar entry point for many institutional investors looking at entering this space.”
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
US Prosecutors Recommend 3-Year Prison Sentence for Binance's Changpeng Zhao: Report
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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