Pantera Capital is deemed the first crypto hedge fund. While the conglomerate came into existence in 2003, founded by Tiger Management’s Dan Morehead, it launched its first crypto-specific bitcoin Fund in 2013. There is an argument that MetaStable Capital was the first crypto hedge fund, which also came to the fore in 2013. However, this Balaji Srinivasan-led body is more of a VC fund with a focus on early-stage crypto startups. Is there a fund that invests in crypto? There are a lot of funds that invest in crypto in one way or the other.
Things have changed now.
As the crypto hedge fund space heats up, new and experienced players are ditching TradFi institutions to jump onto the alpha-generating bandwagon. From 2021 onwards, we have seen many experienced individuals helming key positions. Between 2015 and 2017, when the fund space was in its infancy, mostly inexperienced players were around. Things have changed now. Or we can term it as the general investment plan. Another interesting take on the state of crypto hedge funds is the type of assets and platforms the managers rely on.
Crypto Trading Platform India
A surge in AUM figures shows that hedge funds have been adding to their wallets over these past few years. The current crypto hedge fund space: How are things post the FTX contagion? However, this chart doesn’t consider the FTX crisis, after which the AUM dropped rather significantly. As you can see, in December 2022 – post the FTX contagion – the AUM levels have come close to the 2020-2021 levels, dropping significantly from the 2021-2022 highs. Data from 2021 to 2023 shows a more granular picture.
Hedge fund portfolio management isn’t random and is only token-specific. Alpha generation might be followed by exits. For the funds to be accessible, the asset has to be liquid. Checking the CEX and DEX landscape can help in this regard. Examples of DGB have shown us – pipihosa.com – that analysis platforms, web3 browsers, and other broader players are also worth investing in. Key ratios like Sharpe, comparing the risk-adjusted alphas associated with TradFi and crypto. The market depth and liquidity of the assets in the portfolio.