Institutional investors are still wary of crypto-currency

There are currently 110 digital currency hedge funds in existence, representing $2.2 bln in assets, with over eighty digital currency hedge funds launching so far in 2017.

However, these hedge funds are generally small, and with a limited track record. The majority of these funds are in the the $5M to $20M range.

The large institutional investors (insurance companies, pension funds, and large mutual funds) are still sitting on the fence. This may be due to the wild digital currency price swings, as well as the relative lack of regulation and limited liquidity. They do not want to put their core business at risk.

In addition, out of all the crypto-currencies in existence, many are unlikely to survive and prosper, and some may also lead to fraud.

Another way for fund managers to invest in the crypto-currency market could be via a basket of hedge funds which include a crypto fund.

November 2nd, 2017 by