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Of Quant Trading and Growth of Crypto Hedge Funds

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I read through this piece mainly due to my hobby interests with programmatic crypto trading. I found what the writer had to say positively fascinating and encouraging. 

Additionally, he reports that the investment trends are also quite encouraging, so I thought I'd it share it here. 

IMHO, the current state of the crypto ecosphere is winding up some tremendous potential; due to both speculative interest and the growing awareness of the imminent arrival of the first wave of adoption deployments.


... Increases in assets being allocated to crypto hedge funds in the last few months and increasing indications that bitcoin is a digital store of value and a new hedge against inflation, show that the demand from investors is accelerating.

Assets under management of crypto funds worldwide doubled from 2019 to 2020 (from $1 billion to $2 billion) and there are clear indications that they will roughly triple till the end of this year. A big part of this new money will be allocated to systematic crypto funds.

As CoinDesk’s Noelle Acheson wrote recently, “the outlook for crypto hedge funds is sunny.” Investing in a crypto hedge fund instead of direct investment in the market is a more attractive option for many investors: they do not need to worry about custody, best execution, or liquidity crunches. These elements can be especially important for traditional investors, who are not deeply involved in the underlying technology and look at crypto assets primarily as a new alternative asset class to diversify their existing portfolio.


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