The AUM of global cryptocurrency hedge funds accounting for 1/3——Global Cryptocurrency Quantitative Fund Industry Report Shows
TokeInsight released its Global Report on the Cryptocurrency Quantitative Fund Industry to give you every important detail you need to know in the global quantitative fund industry. The report provides insights into market performance, project development situation, technical development and ecosystem construction.
✅ The current quantitative fund industry for crypto trading is still in an immature and non-standardized stage of development. While closely associated with having low transparency, the current industry lacks supervision, trusteeship and auditing.
✅According to CoinMarketCap, the global cryptocurrency market had a total market value of $186 billion and total of 2,160 kinds of cryptocurrencies with more than 18,000 trading pairs by May 8, 2019. In relation to the study, the number of people holding cryptocurrencies in the world is now hovering around 7%.
✅ Compared to traditional assets such as equities, bonds, fixed assets, foreign exchange and gold, overall cryptocurrency volumes are still considered to be relatively small. At the end of 2018, the cryptocurrency market value was 0.08% of the total global investment market, and its trading volume was only 6.4% of the overall trading volume of gold.
✅Crypto has become an important part of global asset allocation.
✅Low correlation between cryptocurrencies and traditional assets can improve the Sharpe ratio of an investment portfolio.
✅ In the first quarter of 2018, the ICO bubble collapsed, and the price of crypto sharply fell. At this point, the trading volume of the futures market increased, and the CTA method has gradually become a mainstream trading strategy. With the decline of trading volume and the entry of professional funds, the profitability of such strategies employed will gradually decrease, and simple quantitative approaches will begin to fail. Multi-factor and machine learning strategies are now emerging in the market.
✅ Most quantitative funds hold less than1,000 BTC. In terms of scale, fund products with a measure of less than 300 BTC accounted for more than half
of the existing products on the market.
✅Quantitative funds are mainly traded on top-tier exchanges. BitMEx
and OKEx are the most popular among all the cryptocurrency exchanges with usage rates up to 28.21%.
✅Apart from the risks brought by market fluctuations, cryptocurrency quantitative fund investors also face some market risks, such as trading risk, exchange security risk, supervision risk and ethical risks associated with the current market.
TokenInsight is an independent third-party data analytics organization whose focus is to provide accurate information and ratings on companies developing in the blockchain industry. TokenInsight is dedicated to providing accurate ratings, research, and analytics that contribute to intelligent financial decisions and market transparency.
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