According to Eurekahedge, an independent data provider and alternative research firm that specializes in hedge fund databases covering North America, Europe, Asia and Latin America, crypto hedge fund returns increased by approximately 25% in August.
Moreover, in terms of returns, cryptocurrency hedge funds have outperformed competitors that prefer to stay in the traditional asset market, the Financial Times has reported.
Currently, a very small proportion of large hedge funds are testing the potential of Bitcoin and other cryptocurrencies. Most of these financial structures still focus on commodities, bonds and other traditional instruments.
However, the growth of the crypto market has forced some funds to invest some of their capital in it.
June, on the other hand, was a bad month for hedge funds, as their gains fell 10% from a 7% rise in May, according to Eurekahedge analysts.
Anri Arslanyan, head of PwC’s Hong Kong office, has said that two years ago, almost none of the major hedge funds were interested in digital currencies. They feared that investing in innovative and volatile instruments could generate losses for investors.
However, this year the situation has changed significantly. Funds are now not only analyzing the potential of the cryptocurrency market, but are also starting to invest in products focused on Bitcoin and other digital currencies.