Bitcoin Dominance Is Making Investors Rich, Thanks to Crypto Hedge Funds

National economies are sinking into a recession but the bitcoin economy remains healthy and is still growing throughout the coronavirus crisis, even surging to $10,000 on May 7.

Crypto hedge funds, in particular, are reaping the benefits of volatility. For example, Eric Ervin, co-founder of Blockforce Capital in San Diego, said his fund’s returns are up 18% so far in 2020.

“In these wild months, we’re capturing half of the upside,” Ervin said, referring to the economic rollercoaster that took off in March. “Bitcoin’s really taken a lot of market share back from Ethereum … really dominated as Ethereum tries to figure itself out.”

It’s important to note bitcoin’s market dominance during a global crisis is a cause of correlation, not causation. The godfather cryptocurrency was already surging in 2019. According to the annual report released Monday by Elwood Asset Management and the consulting company PricewaterhouseCoopers (PwC), the value of assets under management…