RATE Group | Crypto Hedge Funds are Still Raising $100 Million+
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Crypto Hedge Funds are Still Raising $100 Million+

Crypto Hedge Funds are Still Raising $100 Million+

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Throughout 2018, the cryptocurrency market has lost 75 percent of its valuation. Yet, crypto hedge funds are raising hundreds of millions of dollars from accredited investors and institutions.

 

On November 1, CCN reported that Grayscale Investments, a subsidiary company of cryptocurrency venture capital behemoth Digital Currency Group, raised more than $330 million from both existing and new investors.

After recording a 1,200 percent increase in the amount the firm had raised across three quarters in 2017, Michael Sonnenshein, managing director of Grayscale Investment stated that the substantial 69 percent drop in the price of Bitcoin had minimal impact on the company’s client base.

“Bitcoin prices doing nothing but go down the entire year has not deterred our existing clients from putting more capital to work. Asset inflows are really strong despite these price declines. Investors are taking the pullback as an opportunity to increase…

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