The California company Polychain Capital, which is considered the largest hedge Fund in the field of cryptocurrency, raised $175 million, which, however, will be aimed at creating a venture capital Fund. About it writes Bloomberg.
The new Fund will have a seven-year restriction on withdrawal of capital and, as stated by CEO Olaf Carson-VI, the funds will be used to purchase shares in the troubled cryptocurrency projects.
As notes the edition, in 2018 Polychain became the first in the cryptocurrency space, a hedge Fund, the size of assets under management which exceeded $1 billion, However, against the background of falling markets and the collapse of such mechanisms of fundraising, as the ICO, many companies have to rethink their strategy, giving preference to venture capital investments.
So, Eurekahedge Crypto-Currency Hedge Fund Index say that from the beginning of 2018 closed 42 cryptocurrency hedge Fund. Continue approximately 740 funds, but their losses over the past year averaged about 70%.
“This asset class has always been highly volatile. Its growth was intermittent – after a very rapid growth comes a bear market. When I was running a Polychain Capital, I was ready for it”, — quotes the head of the Polychain Capital Finance Magnates.
As noted by Carlson-Wee, investors should no longer rely on quick profit, as it was in the heyday of the ICO, and recommends to focus on long-term investments.
According Crypto Fund Research, in 2018 was launched venture cryptofauna 125 and 115 hedge funds, and it was the first time this ratio was on the side of venture capitalists.
“There is a large number of options to purchase shares in troubled projects. Often you can even buy below the market value of companies”, — said partner and portfolio Manager of the Funds Arca Jeff Dorman.
Managing partner Multicoin Capital Kyle Samani also notes that hedge funds are quietly converted to venture capital funds. According to him, this is due to the fact that their portfolios lose in the price and a very large proportion of assets under management becomes illiquid.
We will remind, according to the report Diar, for the first three quarters of 2018, venture investment in blockchain and cryptocurrency startups totaled $3.9 billion, 280% more than in just 2017.