With the slow market performance experienced across the cryptocurrency markets last month also manifested significant gains for many cryptocurrency hedge funds, with multiple cryptocurrency hedge fund indexes estimating a more than 45% increase in the value of leading funds.
Last April, the Eurekahedge Crypto-Currency Hedge Fund Index estimates the gains made by crypto funds to have been 45.43%.
According to Eurekahedge’s historical data, April 2018 was the sixth strongest performing month ever for virtual currency funds, and the fourth highest performing month of the last four years. The preceding months to outperform April were December 2017 (+79.51%), August 2017 (+58.42%), May 2017 (81.09%), November 2013 (+405.30%), and October 2013 (+47.64)%.
Despite April’s impressive performance, Eurekahedge estimates 2018’s year to date (YTD) performance to be -21.87% so far. Eurekahedge states that its data for April 2018 is “Based on 71.43% of funds which have reported April 2018 returns as at 15 May 2018.
Market analysis firm, Hedge Fund Research Inc. (HFR), estimates crypto funds to have produced gains of 47.1% during April – as per the company’s HFR Blockchain Index. “HFRI estimates that April’s performance has reduc[ed] the YTD decline to -19.3 percent.”
As some of the lines between the virtual currency and the mainstream financial markets increasingly blur, cryptocurrency hedge funds appear to be attracting numerous Wall Street veterans – with recent reports revealing that Blocktower Capital has hired a number of former Goldman Sachs employees in recent months.
Blocktower Capital, which was co-founded by Matthew Goetz, a former Goldman Sachs vice president, and Ari Paul, formerly of Susquehanna, has recently hired Steve Lee – a former portfolio manager at Goldman.
Lee’s hiring comes shortly after the company also welcomed former Godman vice presidents Elizabeth Ralston in February, and Michael Bucella in January.
Meanwhile, Adam White, the vice president and general manager of Coinbase, indicated that the exchange is also shifting its focusing heavier on targeting institutional investors during an interview with CNBC.
“We think this can unlock $10 billion of institutional investor money sitting on the sideline. We’re seeing a rapid increase in attention awareness and adoption in the cryptocurrency market,” adding that Coinbase is “absolutely here to serve institutions,” White said.