Evidence from the San Francisco-based Crypto Fund Research has shown that nearly 70 cryptocurrency-focused hedge funds that mostly coddled to pensions, family offices, and wealthy individuals closed this year, while the number of new hedge funds being slung is less than half the amount of last year.
The data shows that region-wise, North America introduces in the number of crypto fund closures with 28 shutting down this year. It was followed by Europe’s 23 closures, with Asia-Pacific happening in third at 14.
Spencer Bogart, a general partner at Blockchain Capital, was quoted as saying:
“To me, the fact that there is any institutional adoption for Bitcoin just 10 years into existence is a radical success and beyond what anyone could have imagined objective 3 or 4 years ago.”
Bloomberg reports that the volatile nature of cryptocurrency prices and regulatory uncertainty has been keeping institutional investors away. Currently there are 804 cryptocurrency-focused reserves, out of which 355 are hedge funds and 425 are venture capital funds.