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The Challenges Facing Cryptocurrency Hedge Funds

The number of cryptocurrency funds being launched has boomed in the last few years with an estimated asset value of $3.5-$5bn across 251 funds, according to data from Autonomous NEXT. Hedge funds in particular have been quick to capitalise on the rising value in cryptocurrencies with 43 cryptocurrency-focused hedge funds launched in 2017 and eight more this year according to data from Preqin. However, the first quarter of 2018 saw a big sell off in cryptocurrencies, raising serious questions about the sector. Preqin reported the first hedge fund liquidation this year, but an article from Bloomberg reports it as being as high as...