How bitcoin’s meltdown is ravaging hedge funds

November 21, 2018 – MarketWatch

35 crypto-related funds have shut since the beginning of 2018, according to Crypto Fund Research

However, 2018 has been anything but that. Bitcoin BTCUSD, -0.61%  is in its fifth-largest drawdown since 2010, losing nearly 80% of its value from its December 2017 high, and that cash that was once plentiful, has dried up for some, while other so-called crypto hedge funds set to close their doors. Since Nov. 1, the price of a single bitcoin has lost 27% in value, compared with 67% from the beginning of the year and 77% since its December 2017 all-time high.

“We are seeing some firms now close,” said Josh Gnaizda, CEO of Crypto Fund Research.

Gnaizda estimates that 35 crypto hedge funds have closed since the beginning on 2018, representing more than 5% of the 633 funds the company tracks….

 

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