On February 15, Autonomous Next, a fintech research bureau, published figures indicating that the number of cryptocurrency hedge funds has doubled over 4 months of increased market volatility and peaked at 226. By comparison, as at October 18, 2017, this amount was no more than 10, and in early 2017 there were only 37 hedge funds of this kind.
Despite the rapid increase in the number of hedge funds within cryptocurrency market, the volume of assets managed is still insignificant — $3,5 to £5 billion, according to Autonomous NEXT. These numbers are incomparable to those of traditional hedge funds; for example, only Bridgewater Associates manages assets of a value of more than $122 billion.
As reported by Eurekahedge, nine hedge funds with aggregated assets of $1 billion “made an average of 1,477.85 percent in 2017.”
ZODIAQ’s CEO, Nikolay Kiryann, commented:
“In practice, the actual number of cryptocurrency hedge funds is well over these figures. Plenty of them are not entirely legal and therefore remain in the shade. In addition, there are many freshly launched funds, which do not have substantial amounts at their disposal to date.
These days you often hear that the hedge fund market tends to get saturated, but I strongly disagree. High-quality solutions embracing modern technologies are still lacking. Most of those small shadow funds with less than $10 million assets have inexperienced managers, who rely on intuition rather than sound strategy.
ZEST fund within the ZODIAQ system shall be run on an entirely different basis: asset management will be based on big data analysis and deep machine learning. We are planning to build up an actively managed portfolio, that over the long term is expected to bring more revenue than passive investments — even considering the current market decline.”
More information about ZEST fund is available here: https://golos.io/startup/@zodiaq/fond-ekonomicheskoi-stabilnosti-zodiaq-zest