The scale of encryption hedging funds has doubled, with quantitative strategies accounting for half. The return rate reached 74% in 2019.

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Encryption Hedging Fund Market Development Report: Scale Rise, Strategy Diversification

A recent survey report revealed the latest developments in the cryptocurrency hedging fund market. The data shows that in 2019, the assets under management of cryptocurrency hedging funds rose from $1 billion at the end of 2018 to $2 billion, achieving significant growth.

The report points out that there are currently about 150 active encryption hedging funds, of which 63% were established in 2018 or 2019. These funds mainly adopt four investment strategies: discretionary long, discretionary long/short, quantitative trading, and multi-strategy combinations. Among them, quantitative funds are the most common, accounting for about half of the market share.

From the perspective of investor structure, family offices and high-net-worth individuals are the main sources of capital, accounting for 48% and 42% respectively. The participation of institutional investors is relatively low, with pension funds, foundations, and others hardly involved in this field. On average, each fund has 27.5 investors, with a median single investment size of $300,000.

In terms of performance, the overall performance of cryptocurrency hedging funds in 2019 was strong, with a median return of 74%. Among them, fully discretionary long funds performed the best, with an average return of 42%. However, the 92% rise of Bitcoin still outperformed most funds.

It is worth noting that the development of the encryption derivatives market has provided more tools for funds. 56% of surveyed funds reported using derivatives, and 48% held short positions. The use of leverage has also increased, with 56% of funds being allowed to use leverage in 2020, up from 36% in 2019.

Overall, the encryption hedging fund market is rapidly developing, with increasingly diversified strategies. As the market matures further, it is expected that more complex strategies and products will emerge in the future, attracting a broader range of investors.

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BearMarketBuyervip
· 08-11 09:40
bull retail investors stay at home
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GateUser-74b10196vip
· 08-11 09:35
It's a good deal, right?
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rugged_againvip
· 08-11 09:26
The background has probably done a Rug Pull.
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FloorPriceNightmarevip
· 08-11 09:25
The funds are really appealing, enter a position.
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LiquidityWhisperervip
· 08-11 09:23
Just throw money at it.
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MetaverseLandlordvip
· 08-11 09:19
Is this the rise speed? Get out of here!
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