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Inside money, markets, and Big Tech

This article was published on December 5, 2019

70 cryptocurrency hedge funds have closed so far this year, investors weary of Bitcoin

Uncertainty isn't good for institutional investment

70 cryptocurrency hedge funds have closed so far this year, investors weary of Bitcoin
Matthew Beedham
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Matthew Beedham

Editor, SHIFT by TNW

Matthew is the editor of SHIFT. He likes electric cars, and other things with wheels, wings, or hulls. Matthew is the editor of SHIFT. He likes electric cars, and other things with wheels, wings, or hulls.

If the latest trend continues, it looks like cryptocurrency focused hedge funds could be on the way out.

According to specialist researchers, Crypto Fund Research, more than 70 hedge funds specializing in investments into digital asset projects have closed this year, Bloomberg reports.

The majority of the closures identified came from North America and Europe, with 28 and 23 respectively.

This trend runs contrary to recent research from Fidelity Investments that suggested institutional investments in cryptocurrency were likely to increase over the coming five years.

Investors are reportedly nervous about venturing too deep into the cryptocurrency market because of its volatility and lack of regulation.

As governments look to clamp down on digital asset projects from tech giants like Facebook, the future of cryptocurrencies — from an institutional perspective at least — looks increasingly uncertain.

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